Mathematics: Suppose that 70,000 is invested at 6% interest. find the amount of money in the account after 8 years if the interest is compounded annually

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Suppose that 70,000 is invested at 6% interest.

michellen2020

16.01.2022

The amount of money in account after 8 years is $ 111569.36

Solution:

Given that, Suppose that 70,000 is invested at 6% interest

We have to find the amount of money in the account after 8 years if the interest is compounded annually

Formula for Amount compounded annually is as follows:

$\mathrm{A}=P\left(1+\frac{r}{100}\right)^{n}$

Where,

"A" is the total amount after "n" years

"P" is the principal

"r" is the rate of interest

"n" is the number of years

Here in this sum,

P = 70000

r = 6 %

n = 8 years

Substituting the values in formula,

$A = 70000(1+\frac{6}{100})^8\\\\A = 70000(1+0.06)^8\\\\A =70000 \times 1.06^8\\\\A = 70000 \times 1.59384\\\\A = 111569.36$

Therefore, the amount of money in account after 8 years is $ 111569.36

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