Answer:
$23,907.72
Step-by-step explanation:
Lets use the compound interest formula to solve:
[tex]A=P(1+\frac{r}{n} )^{nt}[/tex]
P = initial balance
r = interest rate (decimal)
n = number of times compounded annually
t = time
First, lets change 6% into a decimal:
6% -> [tex]\frac{6}{100}[/tex] -> 0.06
Next, plug the values into the equation:
[tex]A=15,000(1+\frac{0.06}{1})^{1(8)}[/tex]
[tex]A=23,907.72[/tex]
The balance after 8 years will be $23,907.72
