Question

Find the amount and and compound interest on 20000 compound annually for 3 years the Tate of interest being 5%,10%and12%respectively

Answer 1

Answer:1] 23,152.50

              2] 26,620.00

              3] 28,098.56

Step-by-step explanation:

For #1 that one is 20000[1+.05%]*3=23,152.50

For #2 that one is 20000[1+.10%]*3=26,620.00

For #3 that one is 20000[1+.12%]*3=28,098.56

Your welcome

P.S. I did this in my calculator and then I went to Compound Interest Calculator to check my work.

Answer 2

The formula is principal x ( 1+ interest rate)^ number of years

5%:

20,000 x 1.05^3 = $23152.50 total

Interest = 23152.50-20000= $3,152.50

10%

20000 x 1.10^3 = $26,620.00

Interest = 26620-20000 = $6,620

12%

20000 x 1.12^3 = $28,098.56

Interest = 28098.56-20000 = $8.098.56