Find the amount of savings if $1000 is deposited for three years at 8% annual interest, compounded annually. a) $1104.49 b) $1166.40 c) $1259.71 d) $1268.24

C) $1,259.71

Step-by-step explanation:

For this problem, we will be using the equation

A = P(1 + r)^t

Where P is our initial value, in this case, $1,000

r is our interest rate, represented in decimal format, so

8% / 100% = 0.08

t is our time, in this case, 3 years

Let's fill in our variables in the equation

A = 1,000(1 + 0.08)^3

A = 1,000(1.08)^3

A = 1,000(1.25971)

A = 1,259.71

After the three years of compounded annual interest, the savings account with have $1,259.71.

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