your grandfather father put Br 1,000 into a special deposit to be paid to future grand child 60 years later ,in the year 2000. How much will this deposit be worth in the year 2000 if it has been earning 8 percent interest compounded annually?
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answer
answer
To calculate the future value of the deposit, we can use the compound interest formula:
Future Value = Principal * (1 + Interest Rate)^Time
Here's how we can apply this formula to your question:
Principal (P) = Br 1,000
Interest Rate (r) = 8% = 0.08 (expressed as a decimal)
Time (t) = 60 years
Substituting these values into the formula, we get:
Future Value = 1000 * (1 + 0.08)^60
To solve this calculation, you can use a calculator or a spreadsheet software like Microsoft Excel.
The result will be the future value of the deposit in the year 2000.
evaluate
1000(1.08)^60