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gtnhenbr [62]
3 years ago
14

If an investment of $35,000 is earning an interest rate of 8.00%, compounded annually, then it will take for this investment to

reach a value of $44,089.92—assuming that no additional deposits or withdrawals are made during this time.
Business
1 answer:
Snowcat [4.5K]3 years ago
6 0

Answer:

Therefore the required time period is 3 years.

Explanation:

To calculate the number of period we are using the following formula of future value

Future value = C_0(1+r)^n

C_0 is cash flow at period 0= $ 35,00

r = rate of interest = 8.00% = 0.08

n= number of periods = ?

Future value = $44,089.92

Substituting the values in the formula

44,089.92= 35,000(1+0.08)^n

\Rightarrow (1+0.08)^n=\frac{44089.92}{35000}

\Rightarrow(1.08)^n = 1.259712

\Rightarrow (1.08)^n=(1.08)^3

\therefore n= 3

Therefore the required time period is 3 years.

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