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How much will a $1 deposit be worth after 36 years if the interest rate paid by the bank is 8%?

User Houdini
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Principal is the amount deposited from a bank of a financial institution for a given period of time. In this case, the principal= $ 1, time = 36 years and the rate of interest = 8%.
To get the amount paid by the bank after 36 years will be given by the formula
A= P( 1+r/100)∧n, where A is the amount paid, P is the principal amount, r is the rate of interest and n is the time taken(interest period)
Amount= 1 (1+8/100)∧36
= 1 (1.08)∧36
= 15.968
Therefore, the bank paid $15.968 after 36 years.
User Leonard
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