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13-10-2017
Mathematics

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The amount that results when $2,000 is compounded at 8% annually over six years.

The amount that results when 2000 is compounded at 8 annually over six years class=

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Aliwohaish12 Aliwohaish12

13-10-2017

The formula is
A=p (1+r)^t
A future value?
P present value 2000
R interest rate 0.08
T time 6 years
A=2,000×(1+0.08)^(6)
A=3,173.75

Interest earned
3,173.75−2,000=1,173.75

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