Answer: A= P(1+r/n)^nt
P= 20,000
r=8%/100= 0.08 Divide 8% by 100
n=1, 4, 365, 12
Find the amount of money you will have after 20 years in $20,000 is invested in accounts paying 8% interest compounded annually.
A=20,000(1+0.08/1)^1t
=20,000(1.08)^1(20)
=93,219.142 Remove the 2 as it is less than 5
=$93,219.14
Find the amount you will have quarterly.
A=20,000(1+0.08/4)^4t
=20,000(1.02)^4(20)
=97,508.783 Remove the 3 as it is less than 5
=$97,508.78
Find the amount you will have daily.
A=20,000(1+0.08/365)^365t
=20,000(1.00021917)^365(20)
=99,043.283 Remove the 3 as it is less than 5
=$99,043.28
Find the amount you will have monthly.
A=20,000(1+0.08/12)^4t
=20,000(1.00666667)^12(20) change 1.00666667 to 1.006
=98,536.055 Remove the 5
=$98,536.05
Step-by-step explanation:
