Answer:
The Final Investment Value is \(\$10,309.12\)
The interest earned is \(\$4,309.12\)
Step-by-step explanation:
The compound interest formula is equal to
\(A=P(1+\frac{r}{n})^{nt}\)
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
\(t=8\ years\\ P=\$6,000\\ r=0.07\
=1\)
substitute in the formula above
\(A=6,000(1+\frac{0.07}{1})^{1*8}\)
\(A=\$10,309.12\)
Find the interest earned
\(I=A-P\)
\(I=\$10,309.12-\$6,000=\$4,309.12\)
