SOLUTION: What would $8000 be worth if you earned 8% interest. On it for 40 years and never take any out.

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What would $8000 be worth if you earned 8% interest. On it for 40 years and never take any out.
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If compounded anually you get:
A(40) = 8000(1.08)^40
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= 8000*21.72
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= $173,796.17
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Cheers,
Stan H.
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You can put this solution on YOUR website!

If interest is figured n=1 time a year (annually):

A = P(1 + )nt

A = P(1 + )1t40

A = $8000(1.08)40

A = $173,796.17

if interest is figured 4 times a year (quarterly)

A = P(1 + )nt

If n = 1

A = P(1 + )40*4

A = P(1 + .02)160

A = $190,159.26

Edwin