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.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. 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?
  2. 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 …
  3. calculus

    Find the interest earned on $15,000,invested for 6yrs at 4% interest compounded annually
  4. 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 …
  5. 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 …
  6. 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 …
  7. 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 …
  8. Math

    A child invest $20,000 n a bond that pays 8% interest rate compounded semi-annually. How much money will there be in 18 yrs. (20000*(1+(0.082))^(2*18)=82078.65 Is this correct
  9. 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 …
  10. 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 …

More Similar Questions