How much more would $8,000 earn in four years compounded daily at 5% than compounded annually at 5%?

Given the statement:

8,000 earn in four years compounded daily at 5%

To find the amount we use formula:

where P is the principal , A is the amount , n is number of times compounded per year and t is the time in year.

Here, Principal(P) = $8000, r = 5% and n = 365

Substitute these given values we get;

Simplify:

To find the Interest we use formula:

It is also given that:

8,000 earn in four years compounded annually at 5%.

Here, P = $8000, r = 5% , t =4 year and n = 1

Using the same formula to calculate the amount:

Simplify:

To find the Interest :

Then;

Therefore, $47.23 more would  $8,000 earn in four years compounded daily at 5% than compounded annually at 5%

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step-by-step explanation:

its 50 miles away from the starting point