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Show steps to solving 8000 invested for 7 years at 8 percent compounded annually?
Wiki User
∙ 14y ago
The basic equation for compounded interest is:
FV=PV(1+i)^nt
FV=future value
PV=present value
i=interest compounded per term
n=number of times compounded per year
t=number of years
For this situation:
FV=?
PV=8000
i=.08
n=1
t=7
Plugging the numbers into the equations gives you FV=8000(1+.08)^7
Solving gives you the amount of 13710.59
A way to roughly check your answer is to use the rule of 72. The rule of 72 is a method of seeing how long it would take to double ones money at a certain interest percent.
The interest is 8% so divide 72 by 8 and you get 9. So at 8 percent it would take about 9 years to double your money.
Since we only had 7 years, it makes sense that we did not double our money, but we fairly close to doing so, meaning that our answer is viable.
This is only a way to roughly check the answer.
Wiki User
∙ 14y ago
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How is converting a ratio to percent the same as solving a proportion?
Converting a ratio to a percent is not the same as solving a proportion.
Six thousand dollars is deposited into a fund at an annual rate of 13 percent find the time required for the investment to double if the interest is compounded continuously?
the equation for compound interest is Pe^(rt) the principal you want in the end is twice that of the original 12,000 plugging in and solving you get 12,000=6000e^(.13t) t = 5.33 years
What are the steps towards solving 20 percent of 185?
To do it in steps... 10% of 185 is 18.5 20% is 18.5 x 2 which equals 37
What role of operations that applies when you are solving an equation does not apply when your solving an inequality?
What role of operations that applies when you are solving an equation does not apply when your solving an inequality?"
How do you solve compound interest question with example?
Compound Interest is the interest which gets compounded in Specified time periods.. The formula for solving Compound Interest problems is as follows: A=P(1+R/100)n Where, A= Amount after Including Compound Interest P= Principle R= Rate % n= Time Period For Calculating Compound Interest: CI=A-P Where, CI= COmpound Interest A= Amount P= Principle For Eg: If Rs 1000 is lend @ 10% Compounded Anually for 2 years, then calculation will be done as follows: A= 1000 (1+10/100)2 = 1000 (1.1)2 = Rs 1210 & Compound Interest will be A-P i.e. Rs 1210-1000= Rs 210. Also, Whenever Compounded Half Yearly or Compounded Quarterly is given, the rate will be divided by 2 & 4 respectively & time period will be multiplied by 2 & 4 respectively. For Eg: if in the above eg, Compounded Half yearly is given, then take R= 5%, n = 4 years (4 half years in 2 years) & if Compounded Quarterly is given, then, take R= 2.5%, n= 8 (8 quarters in 2 years)
How is converting a ratio to percent the same as solving a proportion?
Converting a ratio to a percent is not the same as solving a proportion.
If a man takes a portion of 8000 dollars and invests it at 3 percent and invests the rest of it at 4 percent and earns 275 dollars in interest in one year how much did he invest at each rate?
Many times when solving word problems, it's harder to figure out the question and the formulas to use than it is to do the algebra itself. So let's try to figure this out.We'll let x be the amount of money the guy invested at 3 percent.We'll let 8000 - x be the rest of it, which he invested at 4 percent.That means that 0.03 * x is the amount of interest he earned on the money invested at 3 percent, and 0.04 * (8000 - x) is the amount he earned at 4 percent.We also know that those two values add up to 275 dollars, so we can write the following equation: 0.03x + 0.04(8000 - x) = 275. Solving for x, we get0.03x + 0.04(8000 - x) = 2750.03x + 320 - 0.04x = 275-0.01x = -45x = 4500So 4500 is the amount invested at 3 percent. The rest, 8000 - 4500 = 3500, is invested at 4 percent. How do you get -0.01x=-45
Show steps to solving 5000 invested for 10 years at 10 compounded annually?
End of year one: 5000 + 10% = 5500 End of year two: 5500 + 10% = 6050 year three: 6050 + 10% = 6655 year four: 6655 + 10% = 7320.50 year 5: 7320.50 + 10% = 8052.55 6: 8052.55 + 10% = 8857.805 7: 8857.805 + 10% = 9743.59 8: 9743.59 + 10% = 10717.94 9: 10717.94 + 10% = 11789.74 10: 11789.74 + 10% = 12968.71
Six thousand dollars is deposited into a fund at an annual rate of 13 percent find the time required for the investment to double if the interest is compounded continuously?
the equation for compound interest is Pe^(rt) the principal you want in the end is twice that of the original 12,000 plugging in and solving you get 12,000=6000e^(.13t) t = 5.33 years
60 is what percent of 12000?
60 = 12000n Solving for the percent, we have: 60/12000 = n = 1/200 = .005 Multiplying by 100, you have 0.5%.
What is 15 percent off 250.00?
37.5 I got this by solving for x in the proportion 15/100=x/250
Approximately how long will it take for 1000 to grow to 5006 at 8 annual interest and compounded 12 times per year?
Use the equation $=$0*(1 + r)xn where $ is the amount of money, $0 is the initial amount of money, r is the rate, x is the number of times per year the interest is compounded, and n is the number of years the interest is compounded. We are solving for n. To do this we need to use logs. log(1 + r)($/$0)/x = n log1.08(5006/1000)/12 = n = 1.744 years.
How do you get 100 percent on the problem solving for the epf test on club penguin?
don't go into the trap just hit the power box
What is twenty percent of 30?
150 20% is 0.2 This means solving the equation 0.2x = 30 x = 30/0.2 = 150
Twenty percent of what number is 30?
150 20% is 0.2 This means solving the equation 0.2x = 30 x = 30/0.2 = 150
What are the steps towards solving 20 percent of 185?
To do it in steps... 10% of 185 is 18.5 20% is 18.5 x 2 which equals 37
What is the regular price if sale price is 47.60 and the disccount rate is 30 percent?
The sales price is 70 percent of regular price , so 70/100*regular price = sales price (47.60)on solving we get regular price = 68
