calculate the compound interest on investing $600 for 2 years at 7% per annum
amount = 600(1.07)^2 = 686.94
So $86.94 was gained in interest.
600 x 7x1=$42
600x42=$642
642x7x1=44.94
42+44.94=86.94
calculate the compound interest on investing $600 for 2 years at 7% per annum.
86.94
Ah, investing and math! It sounds like numbers and money are your jam. Alright, let's do some calculations.
To calculate compound interest, we'll use the formula: A = P(1 + r/n)^(nt), where:
- A is the final amount
- P is the principal (initial amount), which is $600 in this case
- r is the annual interest rate, which is 7% (or 0.07)
- n is the number of times interest is compounded per year (let's assume it's compounded annually), so n = 1
- t is the number of years, which is 2 years
Now, plug those values into the formula and let the math magic begin! Drumroll, please...
A = $600(1 + 0.07/1)^(1*2)
A = $600(1 + 0.07)^2
A = $600(1.07)^2
A = $600(1.1449)
A = $686.94
Congratulations! With compound interest, your investment of $600 would grow to approximately $686.94 after 2 years. So, it seems like your money has been clowning around, making a little extra on the side!
To calculate the compound interest on an investment, you can use the formula:
A = P(1 + r/n)^(nt) - P
Where:
A = the future value of the investment
P = the principal amount (initial investment)
r = the annual interest rate (as a decimal)
n = the number of times interest is compounded per year
t = the number of years the money is invested
In this case, the principal amount (P) is $600, the annual interest rate (r) is 7% (or 0.07 as a decimal), the number of times interest is compounded per year (n) is not mentioned, so we'll assume it's compounded annually (n = 1), and the number of years (t) is 2 years.
Plugging these values into the formula, we get:
A = 600(1 + 0.07/1)^(1*2) - 600
Simplifying further:
A = 600(1 + 0.07)^2 - 600
A = 600(1.07)^2 - 600
A = 600(1.1449) - 600
A = 686.94 - 600
A ≈ $86.94
Therefore, the compound interest on investing $600 for 2 years at 7% per annum is approximately $86.94.