Welcome to Westonci.ca, where finding answers to your questions is made simple by our community of experts. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.
Sagot :
We can calculate the interest as the difference between the future and the present value of the investment:
[tex]I=FV-PV[/tex]The present value is $4780.
The annual interest rate is r=1.25/100=0.0125.
The number of years is 8, so n=8.
We can calculate the future value as:
[tex]\begin{gathered} FV=PV(1+r)^n \\ FV=4780\cdot(1+0.0125)^8 \\ FV=4780\cdot1.0125^8 \\ FV\approx4780\cdot1.1045 \\ FV\approx5279.44 \end{gathered}[/tex]Then, we can calculate the interest as:
[tex]I=FV-PV=5279.44-4780=499.44[/tex]Answer: D. $499.44
Thanks for stopping by. We are committed to providing the best answers for all your questions. See you again soon. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Thank you for visiting Westonci.ca. Stay informed by coming back for more detailed answers.
