If 6000 dollars is invested in a bank account at an interest rate of 9 per cent per year,
Find the amount in the bank after 8 years if interest is compounded annually:
Find the amount in the bank after 8 years if interest is compounded quarterly:
Find the amount in the bank after 8 years if interest is compounded monthly:
Finally, find the amount in the bank after 8 years if interest is compounded
continuously:

(1) $11955.38

(2) $12228.62

(3) $12293.527

(4) $12326.6

Step-by-step explanation:

Compound interest is given by

A= P( 1 + r/n)^n*t

A= Final amount

P = initial amount = 6000

r = interest rate  = 9% = 0.09

n = number of times interest applied per time period

t = number of time periods elapsed

(1) Compounded annually

    n = 1 , t = 8

    A = 6000( 1+ 0.09/1) ^1*8

     A = 6000( 1.09) ^8 = $11955.38

(2) compounded quarterly

    n = 4 , t = 8

A = 6000( 1+ 0.09/4) ^4*8

     = 6000( 1.0225)^32 = $12228.62

(3) compounded monthly

     n = 12 , t = 8

 A = 6000( 1+0.09/12)^12*8 = $12293.527

(4) compounded continuously

       A = P* e^rt

      r = 0.09 , t = 8

           =  6000* e^0.09*8

           = 6000* e^0.72 = $12326.6