Question
Asked Oct 20, 2019
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find the interest earned principle 8000 rate .06 compounded annually years 3

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Expert Answer

Step 1

The formula to calculate accumulated value is given below:

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Accumulated value = Principle value x (1+ i) Here, nis number of years i is interest rate

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Step 2

Substitute $8,000 for principle value, 0.06 for i and 3 for n,

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Accumulated value $8,000 x (1+0.06) = $8,000 x (1.191016) =$9,528.128

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Step 3

The interest earned over three year can be calculated by taking the difference of accum...

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Interest eamed =Accumulated value - Principle value =$9,528.128-$8,000 =$1,528.128

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