what is the interest of $25,000, invested for 7yrs at 7% interest compounded
What is your subject?
How often is it compounded?
calculus, annually
Then please name the School Subject as Calculus, so a math teacher will read your post.
Sra
To calculate the interest on an investment, you can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = Total amount after interest
P = Principal amount (initial investment)
r = Annual interest rate (expressed as a decimal)
n = Number of times interest is compounded per year
t = Number of years
In this case, the principal amount (P) is $25,000, the annual interest rate (r) is 7% (0.07 as a decimal), and the investment is compounded annually (n = 1) over 7 years (t = 7).
Now we can substitute these values into the formula:
A = $25,000(1 + 0.07/1)^(1*7)
Calculating step-by-step:
A = $25,000(1 + 0.07)^(7)
A = $25,000(1.07)^(7)
A = $25,000(1.718)
Finally, we can calculate the interest earned (I) by subtracting the principal amount (P) from the total amount after interest (A):
I = A - P
I = $43,000 - $25,000
I = $18,000
The interest earned on an investment of $25,000 at a 7% interest rate compounded annually for 7 years is $18,000.