Question

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

Answer 1

Answer:

The amount after 8 years is $ 16,031.579

Step-by-step 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 × $(1+\dfrac{\textrm Rate}{365\times 100})^{365\times \textrm Time}$

Or, Amount = 16000 × $(1+\dfrac{\textrm 9}{365\times 100})^{365\times \textrm 8}$

Or, Amount = 16000 × $(1.0002465)^{8}$

∴  Amount = $ 16,031.579

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