Answer:
$34,021
Explanation:
The compound interest formula to find the final value is:
Final value (FV)= Initial value (IV)*[(1+interest(i))]^(number of periods(n))
In this case, the interest provided by the problem is annual so, we don´t have to modify it. Also, we assume that the $2,000 that Suzie saves are deposited at the beginning of the year.
Year 0: $16,000
Year 1: $18,000+($18,000*[1+8%] ^1)= $19,440
Year 2:$21,440+($21,440*[1+8%] ^2)= $25,007.61
Year 3: $27,007+($27007*[1+8%]^3)=$34,021.81
