00:01
Hello everyone, so this is the question that we have, part one, in the future value of $8 ,000 is invested for seven years at 10 % compounded annually, annually what is the value? part 2, we need to tell the value if an amount of $3 ,200 is invested for $3 ,000.
00:36
Years at 8 % compounded interest quarterly.
00:42
Compounded quarterly.
00:46
Now let's jump on to the solution of the question.
00:50
Part 1.
00:52
We have the principal amount which i'll denote by p is equal to $8 ,000.
01:00
Rate of interest is r and i'll denote this by 10%.
01:10
So we convert this into decimal so 10th over 100 which is with one now years that is time is seven years and compounded annually so in your duration is one so how do we give amount a is given by principle multiplied by one plus rate of interest over n to the bar n t so this is the formula that we are going to use over here and put in the value so this is going to be 8 ,000 multiplied by 1 plus 0 .1 over n is 1 multiplied by 3 to the power 1 multiplied by 7.
01:56
So this comes out to be equal to $15589 .73, approximately equal to $15590...