Math
posted by Michelle .
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.
Respond to this Question
Similar Questions

math
How much more money would I have if I invested $14,000.00 for 8 years at 6.4% in an account that compounded annually rather than in an account that just earned simple interest? 
math check my answer
An internet investment company advertises that if you invest your money with them at 14%, compounded annually, they guarantee yo double your money sooner than you can imagine. Ignoring taxes, how long would it take to double your money … 
calculus
Find the interest earned on $15,000,invested for 6yrs at 4% interest compounded annually 
math
Huan deposited $850 into a collegesavings account earning 4.8% interestcompounded annually. He also deposited$850 into a second account earning 4.8%simple interest. He made no additionaldeposits. After 10 years, which account earnedmore … 
MATH HELP! Complex Interest
Huan deposited $850 into a collegesavings account earning 4.8% interestcompounded annually. He also deposited$850 into a second account earning 4.8%simple interest. He made no additionaldeposits. After 10 years, which account earnedmore … 
Lat math question for some days. Can y'all help?
Huan deposited $850 into a college savings account earning 4.8% interest compounded annually. He also deposited $850 into a second account earning 4.8% simple interest. He made no additional deposits. After 10 years, which account … 
Math/Algebra
Jeremy opened two saving accounts at the beginning of 2010, each with an initial deposit of $4,000. Account A earned simple interest, and account B earned interest that was compounded annually. By the end of 2012, which account earned … 
Math
A child invest $20,000 n a bond that pays 8% interest rate compounded semiannually. How much money will there be in 18 yrs. (20000*(1+(0.082))^(2*18)=82078.65 Is this correct 
Business Math
You want to buy furniture which will cost N$ 20,000. You could take out a personal loan for N$20,000, which would charge you 9% p.a. interest compounded monthly. You also have N$20,000 in an investment account, where you earn interest … 
business math
You want to buy furniture which will cost N$ 20,000. You could take out a personal loan for N$20,000, which would charge you 9% p.a. interest compounded monthly. You also have N$20,000 in an investment account, where you earn interest …