The equation used for this problem is
F = P(1+i)ⁿ
where
F is the future worth
P is the present worth
i is the effective interest rate
n is the number of years
Substituting the values,
F = $8,000(1 + 0.03)⁴
F = $9,004.07
Thus, after 4 years, Aaron will have $9,004.07.
