A SUM OF $8000 IS INVESTED IN A SAVING ACCOUNT WHICH PAY THE INTEREST AT COMPOUNDED ANNUALLY .IF THE AMOUNT OF IN KEPT ON DEPOSIT FOR 6 YEAR WHAT WILL THE COMPOUND AMOUNT EQUAL? HOW MUCH INTEREST WILL BE EARNED DURING THE 6 YEAR
To calculate the compound amount and interest earned in a savings account, we need to know the interest rate and compounding period. Since the problem doesn't mention these details, let's assume an interest rate of 5% compounded annually.
To calculate the compound amount, we can use the formula for compound interest:
A = P(1 + r/n)^(n*t)
Where:
A = Compound amount
P = Principal amount (initial investment)
r = Interest rate (in decimal form)
n = Number of compounding periods per year
t = Number of years
In this case:
P = $8000
r = 5% = 0.05 (assuming)
n = 1 (compounded annually)
t = 6 years
Using these values, we can calculate the compound amount:
A = 8000(1 + 0.05/1)^(1*6)
A = 8000(1 + 0.05)^6
A = 8000(1.05)^6
A ≈ $10,463.08 (rounded to the nearest cent)
So, after 6 years, the compound amount will be approximately $10,463.08.
To calculate the interest earned, we subtract the principal amount from the compound amount:
Interest = Compound amount - Principal amount
Interest = $10,463.08 - $8000
Interest ≈ $2463.08 (rounded to the nearest cent)
Therefore, the interest earned during the 6 years is approximately $2463.08.
First, please do not use all capitals. Online it is like SHOUTING. Not only is it rude, but it is harder to understand. Thank you.
Second, you need the rate of interest to answer your question.