Question

What would be the compound amount after 19 years on an investment of $42,000 with an 11% interest rate compounded annually?

Answer 1

do you know the formula for compound interest? @MamaJ

Answer 2

Yes But i don not understand it

Answer 3

ok tell me the formula

Answer 4

@MamaJ

Answer 5

it is A=P (1+r/n)nt

Answer 6

ok so P is the principle amount or the starting amount, R is the interest rate, n is how many times it is compounded (it depends if your teacher explained if it always in months or just keep it as is)

Answer 7

If the rate is compounded yearly, usually we would use

A = P (1 + r)^n so the multiplier would become (1.11) to the 19th power.

Answer 8

t is the number of years and that last part was for the time no n

Answer 9

annually

Answer 10

okay I am with you so far douglaswinslowcooper

Answer 11

ok so P=42000 r=.11 t=19 n=1

Answer 12

Yes i think that is how it goes chinenyeogueri

Answer 13

plug it in the formula and work it out

Answer 14

ok just a minute

Answer 15

is is suppose to look like 42,000 (1 + 11/19) 1*19

Answer 16

n=1 so its 11/1

Answer 17

but everything else is correct

Answer 18

ok i get it let me see what i get I got 305,060.44

Answer 19

yup thats right