Answer:
$ 201
Explanation:
Thinking process:
The par value = $ 1 000
time = $ 10 years
rate = 8 %
= 0.08
The amount at a time T is given by the formula:
[tex]A = P (1 + \frac{r}{n})^{nt}[/tex]
for $ 1 000, the amount will be:
[tex]A = 1000(1 + \frac{0.08}{10})0.08^{10}\\ = 1000(1+0.008)^{0.8} \\ = 1 000(1.00639)\\ = 1 006[/tex]
The amount will be $ 1 006
for $ 8 00 it will be =[tex]800 (1 + \frac{0.8}{10} )^{0.08*10} \\= 805[/tex]
the amount will be $ 805
therefore, the net gain will be $ 1 006 - $ 805
= $ 201
