Find the missing final amount (future value) and interest earned.
Principal
Rate
Compounded
Time
Final
Amount
Compound
Interest
$7200
4
1
2%
annually
25 years
_____
_____
To find the missing final amount and interest earned, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = Final Amount
P = Principal
r = Interest Rate
n = Number of times interest is compounded per year
t = Time in years
Using the given values, we can substitute them into the formula:
P = $7200
r = 2% = 0.02
n = 1 (since interest is compounded annually)
t = 25 years
A = 7200(1 + 0.02/1)^(1*25)
A = 7200(1 + 0.02)^25
A ≈ 7200(1.02)^25
A ≈ 7200(1.551328376)
A ≈ $11,170.26
The missing final amount is approximately $11,170.26.
To find the compound interest, we subtract the principal from the final amount:
Compound Interest = Final Amount - Principal
Compound Interest = $11,170.26 - $7200
Compound Interest ≈ $3,970.26
The missing compound interest is approximately $3,970.26.
To find the missing final amount and compound interest, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = final amount (future value)
P = principal
r = rate
n = number of times compounded per year
t = time in years
Given:
Principal (P) = $7200
Rate (r) = 2% or 0.02 (expressed as a decimal)
Compounded (n) = 1 time annually
Time (t) = 25 years
Let's substitute these values into the formula to find the missing final amount (A) and compound interest.
A = 7200(1 + 0.02/1)^(1 * 25)
Calculating the exponent first:
A = 7200(1.02)^(25)
Using a calculator, simplify the equation:
A ≈ 7200(2.71828)^(25)
A ≈ 7200(1.73482)
A ≈ $12,526.24 (approx.)
The missing final amount (future value) is approximately $12,526.24.
To find the compound interest, subtract the principal from the final amount:
Compound Interest = Final Amount - Principal
Compound Interest = $12,526.24 - $7200
Compound Interest ≈ $6326.24 (approx.)
The compound interest earned is approximately $6326.24.
To find the missing final amount and compound interest, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A stands for the final amount
P is the principal amount
r is the annual interest rate (expressed as a decimal)
n is the number of times interest is compounded per year
t is the number of years
Given information:
Principal (P): $7200
Rate (r): 2% or 0.02 (expressed as a decimal)
Compounded (n): 1 (annually)
Time (t): 25 years
Calculating the final amount (A):
A = 7200(1 + 0.02/1)^(1 * 25)
A = 7200(1.02)^25
A ≈ $11,634.83
Calculating the compound interest:
Interest (I) = A - P
I = 11,634.83 - 7200
I ≈ $4,434.83
Therefore, the missing final amount is approximately $11,634.83, and the compound interest earned is approximately $4,434.83.