If $11,000 is invested in an account for 25 years. Find the value of the investment at the end of 25 years if the interest is:
1 answer:
If $11,000 is invested, $33,000 is the value of the investment at the end of 25 years if the interest is 8% simple interest and $75,333.23 is the value of the investment at the end of 25 years if the interest is 8% compounded annually. This can be obtained by using formulas for simple interest and compound interest.
<h3>What is the formulas of simple interest and compound interest?</h3>- Simple interest
A = P(1 +Rt/100) , P = principle amount ,R = rate of interest, t = time(in years)
- Compound interest (annually)
A = P(1 + R/100)^t , P = principal amount, R = rate of interest, t = time(in years)
<h3>What is the value of investment?</h3>
Given that,
P = $11,000 , R = 8%, t = 25 years
- 8% simple interest
A = P(1 +Rt/100) = = $33,000
- 8% compounded annually
A = P(1 + R/100)^t = =
= $75,333.23
Hence If $11,000 is invested, $33,000 is the value of the investment at the end of 25 years if the interest is 8% simple interest and $75,333.23 is the value of the investment at the end of 25 years if the interest is 8% compounded annually.
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Question: If $11,000 is invested in an account for 25 years. Find the value of the investment at the end of 25 years if the interest is:
(a) 8% simple interest
(b) 8% compounded annually
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Answer:
an equation of a line
Step-by-step explanation:
This is an equation of a line. Lets walk through it.
y=1/3x+2
This is to find out what the Y coordinate would be when X is plugged in. So, if x was 6, you would take 1/3 of 6 to get 2, and add 2. The y intercept would be 4, since y=1/3(6)+2, y=2+2, y=4
Y=1/3x+2
This is what the slope is. If the slope is negative (ie. -3/4) the greater the x intercept the lower the y will be. (so if I had x=4 for a slope of -3/4, that would be y=-3/4(4)+2, y=-3+2, y=-1) But if the slope is positive (ie. 1/3) the greater the x value the greater the y value as well. (see graph attached below for positive)
Y=1/3x+2
This is the Y intercept. (This is NOT the y coordinate. This is only the coordinate of y if x=0) This number tells you where the Y intercept is. If it adds, the y intercept is positive. If it subtracts, the y intercept is negative.
Sorry if these explainations dont make sense. But, here is the graph for y=1/3x+2
