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Suppose you invest $16000 at 9% interest and that it is compounded daily. How much will you have in 8 years?

User Keo Malope
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1 Answer

4 votes

Answer:

The amount after 8 years is $ 16,031.579

Explanation:

Given as :

The Principal invested = $ 16000

The rate of interest compounded daily = 9 %

The time period = 8 years

Let The amount after 8 years = $ A

From Compounded method

Amount = Principal invested ×
(1+(\textrm Rate)/(365* 100))^(365* \textrm Time)

Or, Amount = 16000 ×
(1+(\textrm 9)/(365* 100))^(365* \textrm 8)

Or, Amount = 16000 ×
(1.0002465)^(8)

∴ Amount = $ 16,031.579

Hence The amount after 8 years is $ 16,031.579 Answer

User Stevendaniels
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