How much compound interest will $50,000 earn in 10 years at 3.4% APR compounded yearly, providing no deposits or withdrawals are

Question

3 years ago

12

made? Hint: Use the formula A = P(1.00 + r)n.

2 answers:

Vika [28.1K] · Answer 1 · 2022-03-17T22:54:10+03:00

5 0

Total = Principal * (1 + rate)^years
Total = 50,000 * (1.034)^10
Total = 50,000 * 1.3970288911 
Total = 69,851.44

fiasKO [112] · Answer 2 · 2022-03-18T00:04:54+03:00

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

$A=P(1+r)^n$

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,

$A=50000(1+0.034)^{10}$

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