Given:
[tex]\text{Monthly rate=}\frac{24}{12\times100}[/tex][tex]\text{Monthly rate=}0.02[/tex]Each month amount increse by a factor 1.02
Each month balance decrease by a factor 0.97
[tex]\text{Total factor= (1.02)(0.97)}[/tex][tex]\text{Total factor=}0.9894[/tex]Balance after 8 years:
[tex]=4000(0.9894)^{96}[/tex][tex]=\text{ \$1438}.01[/tex]The balance after 8 years is $1438.01
