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posted by Michelle on Friday, April 20, 2012 at 4:43pm.
How much interest is earned on 20,000 at 6% for 2 yrs compounded annually?
P = Po(1+r)^n. r = 0.06 = APR expressed as a decimal. n = 1comp/r * 2yrs = 2 Compounding periods. P = 20000(1.06)^2 = $22472.00.
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