Can anyone solve this for me? and show how you got that answer?
1 answer:
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Answer:
Given the statement:
8,000 earn in four years compounded daily at 5%
To find the amount we use formula:
where P is the principal , A is the amount , n is number of times compounded per year and t is the time in year.
Here, Principal(P) = $8000, r = 5% and n = 365
Substitute these given values we get;
Simplify:
To find the Interest we use formula:
It is also given that:
8,000 earn in four years compounded annually at 5%.
Here, P = $8000, r = 5% , t =4 year and n = 1
Using the same formula to calculate the amount:
Simplify:
To find the Interest :
Then;
Therefore, $47.23 more would $8,000 earn in four years compounded daily at 5% than compounded annually at 5%