What sum deposited today
at 5% compounded annually for 8 years will provide the same amount as $1000
deposited at the end of each year for 8 years at 6% compounded annually?
Thank you for the opportunity to help you with your question!
I = PRT
A = P+PRT = P(1+RT) simple intrest
compound interest = P (1+R)^t
according to formula
P(1+R1t1) = 1000( 1+R2) ^t
P(1 + 5*8/100) = 1000( 1+6/100)^8
P* 1.4 = 1593.848
P = $1138.46
If you will not understand the formula let me know
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