Question

Find the value, in 10 years time, of $100 invested at 8% interest compounded annually.

Answer 1

If you deposit $4500 into an account paying 7% annual interest compounded semi anualy , how much money will be in the account after 9 years?

Result

The amount is $8358.7 and the interest is $3858.7.

Explanation

STEP 1: To find amount we use formula:

A = P \left( 1 + \frac{r}{n} \right)^{\Large{n \cdot t}}A = total amount 
P = principal or amount of money deposited,
r = annual interest rate 
n = number of times compounded per year
t = time in years

In this example we have

P = \$4500 ~,~ r = 7 \% ~ , ~ n = 2 ~ \text{and} ~ t = 9 ~ \text{years}

After plugging the given information we have

\begin{aligned} A &= 4500 \left( 1 + \frac{ 0.07 }{ 2 } \right)^{\Large{ 2 \cdot 9 }} \\ A &= 4500 \cdot { 1.035 } ^ { 18 } \\ A &= 4500 \cdot 1.857489 \\ A &= 8358.7 \end{aligned}

STEP 2: To find interest we use formula A = P + I , since A = 8358.7 and P = 4500 we have:

\begin{aligned} A &= P + I \\ 8358.7 &= 4500 + I \\ I &= 8358.7 - 4500 \\ I &= 3858.7 \end{aligned}

Answer 2

80 is the answer of the above question