Answer: $8,392.56
The total amount Irini owed Olena is $8,392.56
Explanation:
By using compound interest to solve the question
A=p (1+ r/n) *nt (raised to power nt)
A= future amount to be returned (unknown)
P= principal (present value) =$8,000
r = 4.8% = 0.048
t = 1year
n = 12 payments in a year ( the rate compounded monthly)
A= 8000 {1 + (0.048/12)} * 12
A = 8000 ( 1+0.004) *12
A = 8000 (1.004) *12
A = $8,392.56 as the amount to owed.
Nt: * 12 means raised to the power of 12.
