Answer: $371.39
Step-by-step explanation:
The formula to calculate the compound amount after t years is given by :-
[tex]A=P(1+r)^t[/tex], where P is the principle amount and r is the rate of interest.
Given: Principle amount =$150
The rate of interest = 12%=0.12
Now, the amount compounded after 8 years will be:-
[tex]A=150(1+0.12)^8=150(1.12)^8=371.394476444\approx371.39[/tex]
Hence, the value of $150 after eight years if you earn 12 percent interest per year would be $371.39.
