Question

If $8000 is invested at an annual interest rate of 5% and compounded annually, what is the balance after 4 years?

Answer 1

Answer: 7 years

Step-by-step explanation:

We make the assumption that 8000 is 100% since it is our output value.

Step 2: We next represent the value we seek with $x$.

Step 3: From step 1, it follows that $10\%=8000$.

Step 4: In the same vein, 100%=8000$.

So divide that by 5% 0.05%

Then multiply it by 5 0.0025%

Then convert it into money 26$