Answer:
Compound interest made on $50,000 for 10 years at 3.4% APR compounded yearly is $ 19851.44
Step-by-step explanation:
Given: Principal $50,000 for 10 years at 3.4% APR compounded yearly,
We have to find the compound interest made on $50,000 for 10 years at 3.4% APR compounded yearly,
Using formula for compound interest
Where A is amount
P is principal
r is rate of interest
n is time period
For the given question,
P = $ 50,000
r = 3.4% = 0.034
t = 10
Substitute, we have,
Simplify, we get,
A = $ 69851.44
Thus, Compound interest = Amount - Principal
C.I = 69851.44 - 50,000
C.I. = 19851.44
Thus, Compound interest made on $50,000 for 10 years at 3.4% APR compounded yearly is $ 19851.44