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5. a person invests $1000 at an interest rate of 8% per year. how much …

Question

  1. a person invests $1000 at an interest rate of 8% per year. how much will they have after 2 years?

Explanation:

Step1: Determine Interest Type (Assume Simple Interest)

Simple Interest formula: $I = P \times r \times t$, where $P = 1000$, $r = 0.08$, $t = 2$.

Step2: Calculate Interest

$I = 1000 \times 0.08 \times 2 = 160$.

Step3: Calculate Total Amount

Total = $P + I = 1000 + 160 = 1160$. (If Compound Interest: $A = P(1 + r)^t = 1000(1 + 0.08)^2 = 1000 \times 1.1664 = 1166.4$. But since not specified, simple interest is common in basic problems.)

Answer:

If simple interest: $\$1160$; If compound interest: $\$1166.4$ (Assuming simple interest as default for basic problem, answer is $\$1160$)