Problema Solution
What would be the compound amount after 19 years on an investment of $42,000 with an 11% interest rate compounded annually? (Points : 2.5)
Answer provided by our tutors
The formula for the compound amount is
A = P (1 + (r/n))^ (n*t)
P = $42,000
r = 0.11 (11% interest rate)
n = 1 (interest compounded annually)
t = 19 years
A = 42000*((1 + (0.11/1))^19)
A = $305060.44 approximately
After 19 years the compound amount would be $305,060.44.