Answer:
She will owe approximately $8,427.40 after three years.
Step-by-step explanation:
The compound interest formula is
A = P(1 + r/n)^(nt)
where A is the final amount; P is the principal, or initial, amount; r is the interest rate, as a decimal; n is the number of times the interest is applied per year; and t is the amount of time, in years.
By substituting the values in and assuming that the interest is compounded every year, we get:
A = 8,000(1 + 0.0175)^((1)(3))
8,000(1.0175)^3
8,000(1.05342411)
8,427.40.
