To solve the problem of finding the amount of money in an account after 8 years with compound interest, we can use the compound interest formula:

$A = P \left(1 + \frac{r}{n}\right)^{nt}$

Where:

• $A$ is the amount of money in the account after interest,
• $P$ is the principal amount (initial investment),
• $r$ is the annual interest rate (as a decimal),
• $n$ is the number of times the interest is compounded per year,
• $t$ is the number of years.

Given:

• $P = 60,000$,
• $r = 5\% = 0.05$,
• $n = 1$ (compounded annually),
• $t = 8$ years.

Substitute the values into the formula:

$A = 60,000 \left(1 + \frac{0.05}{1}\right)^{1 \times 8}$

Simplifying the equation:

$A = 60,000 \left(1.05\right)^8$

Now calculate:

$A = 60,000 \times (1.477455)$

$A \approx 88,647.30$

Thus, the amount of money in the account after 8 years is approximately $88,647.30.

Would you like more details or have any questions about this calculation?

Here are some related questions you might explore:

1. What if the interest was compounded quarterly instead of annually?
2. How would the final amount change if the interest rate was 6% instead of 5%?
3. What would be the amount after 10 years instead of 8?
4. How much interest was earned over the 8 years?
5. What is the formula for continuous compound interest?

Tip: The more frequently interest is compounded, the higher the final amount will be.