EXPLANATION
If Hunter has $300 in savings and the interest rate is 8%, compounded annualy, we can apply the following equation:
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]Where, P=Principal=300, r=rate (in decimal form) = 8/100 = 0.08, n=number of compounded times = 1 and t = time = 3
Substituting terms:
[tex]A=300\cdot(1+\frac{0.08}{1})^{1\cdot3}[/tex]Adding numbers:
[tex]A=300\cdot(1.08)^3[/tex]Computing the powers:
[tex]A=300\cdot1.26[/tex]Multiplying numbers:
[tex]A=378[/tex]In conclusion, there will be 378.00 in three years
