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Rom4ik [11]
3 years ago
13

What is the total amount and the amount of interest earned on $6,500 at 6% for 25 years?

Mathematics
1 answer:
NNADVOKAT [17]3 years ago
5 0

Answer:

Total amount earned after 25 years=$27,897.16

Step-by-step explanation:

Step 1: Express formula for calculating total amount

The total amount after 25 years can be expressed as;

A=P(1+r)^n

where;

A=total amount after 25 years

P=principal amount

r=annual interest rate

n=number of years

Step 2: Substitute values in the expression

In our case;

P=$6,500

r=6%=6/100=0.06

n=25 years

replacing in the original expression;

A=6,500(1+0.06)^25

A=27,897.16

Total amount earned after 25 years=$27,897.16

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