Question

Question 4: Using the compound interest formula, if you invest $1000 in an account with an interest rate of 4% that compounds daily, how much money will be in the account after 20 years?​

Answer 1

Explanation:

Ex1: If $1000 is invested now with simple interest of 8% per year. Find the new amount after two years.

P = $1000, t = 2 years, r = 0.08.

A = 1000(1+0.08(2)) = 1000(1.16) = 1160