Th amount of money that Diana is left with is $8,430.23.
How much is Diana left with?
The first step is to determine the interest earned in the first year and the total amount that was made in the 2 years.
The formula used to determine the future value with monthly compounding is:
P(1 + r)^( n x m)
Where:
- P = present value
- r = periodic interest rate
- n = number of years
- m = frequency of compounding
Total amount made in 2 years = $8000 x ( 1 + 5% / 12)^(12 x 2) = 8839.53
Interest earned in the first year = [ $8000 x ( 1 + 5% / 12)^(12) ] - 8000 = $409.29
Amount she is left with = 8839.53 - $409.29 = $8430.23
To learn more about compounding, please check: https://brainly.com/question/18760477
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