# Math

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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.

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