Post a New Question

Math

posted by .

How much interest is earned on 20,000 at 6% for 2 yrs compounded annually?

  • Math -

    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.

Answer This Question

First Name:
School Subject:
Answer:

Related Questions

More Related Questions

Post a New Question