600
Explanation:
Principal amount = 1000
time = 8 years
rate of losing = 0.05
A = 1000 (1 - 0.05 (8))
A = 1000 ( 1 - 0.4)
A = 1000 (0.6)
A = 600
The value of a $1,000 investment that loses 5% each year for 8 years is $600.
An item purchased or invested in to increase wealth and also conserve money from hard-earned income or gains is referred to as an investment.
The primary goal of a capital invested is to earn an extra amount of income or to return from the investment over a period of time.
Computation:
According to the given information,
Principal amount(P)= $1,000
Time(t) = 8 years
Rate of losing(r) = 0.05
Then, the given values to be put into the formula of compound amount:
Amount (A)= P(1- r×t)
A =$1000 (1–0.05 (8))
A = $1000 (1–0.4)
A = $1000 (0.6)
A = $600
Learn more about the investment refer to:
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