Connect with knowledgeable individuals and get your questions answered on IDNLearn.com. Our platform offers reliable and comprehensive answers to help you make informed decisions quickly and easily.
Sagot :
The compound interest after 20 years is $22700.
What is compound interest?
Compound interest is the interest you earn on interest. Compound interest is the interest calculated on the principal and the interest accumulated over the previous period.
For the given situation,
The principle, p = $10,000
Rate of interest, r = 6.1% = 0.061
Compounded continuously, n = 1
Number of years, T = 20
The amount formula of compound interest is
[tex]A=p(1+\frac{r}{n} )^{T}[/tex]
On substituting the above values,
⇒ [tex]A=10000(1+\frac{0.061}{1} )^{20}[/tex]
⇒ [tex]A=10000(1.061)^{20}[/tex]
⇒ [tex]A=32681.9[/tex] ≈ [tex]32682[/tex]
The compound interest can be calculated as
[tex]CI=A-P[/tex]
⇒ [tex]CI=32682-10000[/tex]
⇒ [tex]CI=22682[/tex] ≈ [tex]22700[/tex]
Hence we can conclude that the compound interest after 20 years is $22700.
Learn more about compound interest here
https://brainly.com/question/13155407
#SPJ2
We are delighted to have you as part of our community. Keep asking, answering, and sharing your insights. Together, we can create a valuable knowledge resource. Find reliable answers at IDNLearn.com. Thanks for stopping by, and come back for more trustworthy solutions.
