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Olin [163]
3 years ago
8

ULLIVLY/1/2/3/assessment

Mathematics
1 answer:
zvonat [6]3 years ago
3 0
<h3>The worth after 4 years is $ 680.24</h3>

<em><u>Solution:</u></em>

<em><u>The formula for compound interest, including principal sum, is:</u></em>

A = p(1+\frac{r}{n})^{nt}

Where,

A = the future value of the investment

P = the principal investment amount

r = the annual interest rate (decimal)

n = the number of times that interest is compounded per unit t

t = the time the money is invested

From given,

n = 1 ( since interest is compounded annually)

p = 500

t = 4

r = 8 \% = \frac{8}{100} = 0.08

<em><u>Substituting the values we get,</u></em>

A = 500(1+ \frac{0.08}{1})^{1 \times 4}\\\\A = 500(1.08)^4\\\\A = 500 \times 1.36048896\\\\A = 680.24448 \approx 680.24

Thus the worth after 4 years is $ 680.24

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