Answer:
F=531831381
Explanation:
There are two ways of doing this question:
1) By Formula
2) By Using Compound interest Table
By Formula:
[tex]F=A*\frac{(1+i)^{n}-1}{i}[/tex]
Where:
F is future value
A is annual amount per year
i is interest rate
n is number of years
[tex]F=50 million*\frac{(1+0.08)^{8}-1}{0.08}[/tex]
F=531831381
By Using Compound interest Table:
F=A(F/A,i,n)
From Table F/A at i=8% and n=8 is 10.6366
F=50000000*(10.6366)
F=531830000≅531831381
The difference in two answers is due to decimal points if you take value from table to greater decimal points you will get the exact answer as by using formula.
