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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
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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 Value PV= Present Value = $1 r= interest rate = 8% = 0.08 n=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
If $1 were invested at 8 percent interest compounded annually, the
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12 Oct 2017, 15:55
Top Contributor
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 decimal c = 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:
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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81% (00:47) correct 
