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If $1 were invested at 8 percent interest compounded annually, the
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Updated on: 25 May 2017, 13:28
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If $1 were invested at 8 percent interest compounded annually, the total value of investment, in dollars at the end of 6 years would be A. \((1.8)^6\) B. \((1.08)^6\) C. \(6(1.08)\) D. \(1 + (0.08)^6\) E. \(1 + 6(0.08)\)
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Originally posted by Lolaergasheva on 08 Feb 2011, 04:48.
Last edited by Bunuel on 25 May 2017, 13:28, edited 1 time in total.
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Re: If $1 were invested at 8 percent interest compounded annually, the
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08 Feb 2011, 05:18
Q: What is the future value of $1 after 6 years; if it incurs compound interest every year once. Formula: \(FV = PV(1+\frac{r}{n})^{nt}\) where, FV= Future ValuePV= Present Value = $1r= interest rate = 8% = 0.08n=frequency of interest application to the value per year = 1(if compunded annually); it means that 8% interest is applied only once a year.t=time (in years)=6\(FV = PV(1+\frac{r}{n})^{nt}\) \(FV = 1(1+\frac{0.08}{1})^{1*6}\) \(FV = 1(1+0.08)^6\) \(FV = (1.08)^6\) Ans: "B"
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Re: If $1 were invested at 8 percent interest compounded annually, the
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17 May 2017, 06:04
If 1$ were invested at 8% interest compounded annually, the total value of the investment at the end of 6 years would be: Amount = P \((1+\frac{r}{100})^n\) P = Principal, r = rate of interest, n = number of years. P = $1, r = 8% , n = 6 years Amount = 1\((1+\frac{8}{100})^6\) = 1\((\frac{108}{100})^6\) = 1\((1.08)^6\) = \((1.08)^6\)Answer B... _________________ Kindly press "+1 Kudos" to appreciate



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Re: If $1 were invested at 8 percent interest compounded annually, the
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19 May 2017, 06:24
Lolaergasheva wrote: If 1$ were invested at 8% interest compounded annually, the total value of the investment at the end of 6 years would be:
A. (1.8)^6 B. (1.08)^6 C. 6(1.08) D. 1 + (0.08)^6 E. 1 + 6(0.08) Using the compound interest formula, we have: future value = present value(1 + rate/n)^nt (in which n = number of compounding periods in a year and t = total number of years) future value = 1(1 + 0.08/1)^(1)(6) future value = (1.08)^6 Answer: B
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If $1 were invested at 8 percent interest compounded annually, the
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12 Oct 2017, 15:55
Lolaergasheva wrote: If $1 were invested at 8 percent interest compounded annually, the total value of investment, in dollars at the end of 6 years would be
A. \((1.8)^6\)
B. \((1.08)^6\)
C. \(6(1.08)\)
D. \(1 + (0.08)^6\)
E. \(1 + 6(0.08)\) You can use this formula to calculate compound interest: Final balance = P( 1 + r/c)^nc where: P = the principal (the initial investment) r = the annual interest rate expressed as a decimalc = the number of times the interest is compounded each year n = the number of years the investment collects interest For this question, P = $1, r = 0.08, c = 1, n = 6 So, the FINAL BALANCE = 1( 1 + 0.08/1)^[(6)(1)] = (1.08)^6 Answer: Cheers, Brent
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Re: If $1 were invested at 8 percent interest compounded annually, the
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21 Oct 2018, 00:29
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Re: If $1 were invested at 8 percent interest compounded annually, the
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