We know the formula for compound interest as
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
Now, we have been given that Ellen has $125. It means we have
P = $125
From the given directions, we have
[tex]r=0.085\\ t=8\\ n=1[/tex]
On substituting these values in the above mentioned formula, we have
[tex]A=125(1+\frac{0.085}{1})^{1\times 8}\\ \\ A=\$240.08[/tex]
Therefore, Ellen would have $240.08 after 8 years.
