Inobo has 8500 that ho invosts in an account that pays \( 8 \% \) Interest compound yearly. How much money doos thabo have at the end of 3 years?

To calculate the amount in the account after 3 years with yearly compounding interest, you can use the formula: \[ A = P(1 + r)^t \] where: - \( A \) is the amount of money accumulated after n years, including interest. - \( P \) is the principal amount (the initial amount of money). - \( r \) is the annual interest rate (decimal). - \( t \) is the time the money is invested for in years. Substituting the values: \( P = 8500 \), \( r = 0.08 \), and \( t = 3 \): \[ A = 8500(1 + 0.08)^3 = 8500(1.08)^3 \approx 8500(1.259712) \approx 10606.55 \] At the end of 3 years, Inobo will have approximately \$10,606.55. For historical context, the concept of compound interest dates back to ancient Mesopotamia around 3000 BC, where early financiers used grain loans to create interest rates. This magical snowball effect of money growing over time has made it a cornerstone of modern finance. If you're looking for practical investing tips, consider starting your investments early! This allows your money more time to grow through compound interest, creating a financial snowball effect. Just remember, though, to keep an eye on those pesky hidden fees—sometimes they can sneak up on you like a ninja!