Problema Solution
Use the formula for compound interest to find A
A=P(1+r)n (n is like the second power)
P=$20000, r=0.15, and n = 2 years
At the end of 2 years A is $________
Answer provided by our tutors
A=P(1+r)^n
P=$20,000
r=0.15
n = 2 years
A = 20000(1 + 0.15)^2
A = 20000*1.15^2
A = $26,450
At the end of 2 years A is $26,450