Problema Solution
I have been saving 40,000 a year for property. with a 7% from my bank in 12 years how much will this be?
Answer provided by our tutors
The formula for the compound interest is
A = P (1 + (r/n))^ (n*t)
P = $40,00
r = 0.07 (7% interest)
n = 1 (interest compounded annually)
t = 12 years
A = 40000*((1 + (0.07/1))^12)
A = $90087.66
After 12 years the compound interest will be $90087.66.