The amount of money in account after 8 years is $ 111569.36
Solution:
Given that, Suppose that 70,000 is invested at 6% interest
We have to find the amount of money in the account after 8 years if the interest is compounded annually
Formula for Amount compounded annually is as follows:
[tex]\mathrm{A}=P\left(1+\frac{r}{100}\right)^{n}[/tex]
Where,
"A" is the total amount after "n" years
"P" is the principal
"r" is the rate of interest
"n" is the number of years
Here in this sum,
P = 70000
r = 6 %
n = 8 years
Substituting the values in formula,
[tex]A = 70000(1+\frac{6}{100})^8\\\\A = 70000(1+0.06)^8\\\\A =70000 \times 1.06^8\\\\A = 70000 \times 1.59384\\\\A = 111569.36[/tex]
Therefore, the amount of money in account after 8 years is $ 111569.36
