Question

Suppose you invest $16000 at 9% interest and that it is compounded daily. How much will you have in 8 years?

Answer 1

The amount after 8 years is $ 16,031.579

Explanation:

Given as :

The Principal invested = $ 16000

The rate of interest compounded daily = 9 %

The time period = 8 years

Let The amount after 8 years = $ A

From Compounded method

Amount = Principal invested ×
`(1+(\textrm Rate)/(365* 100))^(365* \textrm Time)`

Or, Amount = 16000 ×
`(1+(\textrm 9)/(365* 100))^(365* \textrm 8)`

Or, Amount = 16000 ×
`(1.0002465)^(8)`

∴ Amount = $ 16,031.579

Hence The amount after 8 years is $ 16,031.579 Answer