Question 550176: What would $8000 be worth if you earned 8% interest. On it for 40 years and never take any out. Found 2 solutions by stanbon, Edwin McCravy:Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! 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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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
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