how much would be in your savings acount in 8 years from an initial deposit of 150.00 today if the bank pays 7% 6% and (%
for 7%
amount after 8 years = 150(1.07)^8 = 257.73
do the same for the other rates
ok now the same 8 years at 8% with a deposit of 150.00 can you please show me the calculation
PLease .....
surely you can tell how the 1.07 relates to a rate of 7%.
give it a try.
so am i then 150 (1.07)^7%
To calculate the final amount in your savings account after 8 years, we can use the compound interest formula:
A = P(1 + r/n)^(nt)
Where:
A = final amount
P = initial deposit
r = annual interest rate (in decimal form)
n = number of times interest is compounded per year
t = number of years
In this case, we have three interest rates: 7%, 6%, and x% (unknown). Let's take it step by step.
First, let's calculate the amount after 8 years with an interest rate of 7% compounded annually:
A1 = 150(1 + 0.07/1)^(1*8)
A1 = 150(1 + 0.07)^8
A1 = 150(1.07)^8
Next, let's calculate the amount after 8 years with an interest rate of 6% compounded semi-annually:
A2 = A1(1 + 0.06/2)^(2*8)
A2 = A1(1 + 0.03)^16
Finally, we need to calculate the amount with the unknown interest rate (x%) compounded quarterly (assuming we round x% to the nearest two decimal places):
A3 = A2(1 + x%/4)^(4*8)
A3 = A2(1 + x%/100)^32
To simplify things, let's combine all the equations:
A3 = 150(1.07)^8(1.03)^16(1 + x%/100)^32
To solve for the value of A3, you need to know the value of x%. Once you have that, simply substitute it into the equation and calculate the final amount in your savings account after 8 years.