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SVEN [57.7K]
3 years ago
14

if you make a one-time investment of $500 at 8% interest compounded annually, how much money will you have in 20 years? 50 years

?
Business
1 answer:
sladkih [1.3K]3 years ago
8 0

The formula for annually compounded interest is as follows:

A = P(1 + r)^t

P is the initial amount you invest, r is the interest rate as a decimal, and t is the number of years the money will have been invested.

Convert the 8% interest rate into a decimal by dividing by 100:

8 \div 100 = 0.08

We now have all of our values. Plug the known values into the equation:

P = 500, r = 0.08

t = 20

500(1+0.08)^{20} = 500(1.08)^{20} = \boxed{2330.48}

t  = 50

500(1+0.08)^{50} = 500(1.08)^{50} = \boxed{23450.81}

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lisov135 [29]

Answer:

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3 0
3 years ago
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4 0
1 year ago
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3 years ago
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3 years ago
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Answer:

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