If Kandise put $9,000 in a savings account which had a interest rate of 2% which was compounded annually, how much would be in that account after 8 years? How much would he have earned?
2007-10-05 20:59:38 · 3 answers · asked by 511@ 4 in Science & Mathematics ➔ Mathematics
I would think you use the basic formula:
FV = PV(1 + i)^n
Where:
FV = future value
PV = present value
i = interest rate
n = number of years
FV = 9000 (1 + 0.02)^8
FV = 9000 (1.02)^8
FV = 9000 * 1.1716593810022656
FV = 10544.9344290203904
Thus,
Earnings = FV - PV
Answer: 1544.9344290203904
2007-10-05 21:14:24 · answer #1 · answered by aka_gian 3 · 0⤊ 0⤋
9000 x 1.02^8 will be the sum on maturity and if you subtract 9000 from that you will get what you want.
2007-10-05 21:04:30 · answer #2 · answered by Swamy 7 · 1⤊ 0⤋
formula one every time my friend. i vote lewis hamiliton
2007-10-05 21:02:02 · answer #3 · answered by caz 3 · 0⤊ 4⤋