Answer
\$8.
Work Step by Step
Investment $P=\$8,000$
Time $t=3$ years
Rate of interest $8\%=0.08$
$n=12$.
$A=P\left ( 1+ \frac{r}{n} \right ) ^{nt}$
Where $A$ is the return.
Substitute all values into the formula.
$A_1=8,000\left ( 1+ \frac{0.08}{12} \right ) ^{12\cdot 3}$
$A_1=8,000\left ( \frac{12+0.08}{12} \right ) ^{36}$
$A_1=8,000\left ( \frac{12.08}{12} \right ) ^{36}$
$A_1=10161.896413$
For compounded continuously.
$A=Pe^{rt}$
Substitute all values.
$A_2=8000\cdot e^{0.08\cdot 3}$
Simplify.
$A_2=10169.9932026$
$A_2-A_1 = 10169.9932026 - 10161.896413$
$A_2-A_1 = 8.0967896$
Rounded to the nearest dollar.
$A_2-A_1 =\$ 8$.
