Question

Using the tables in Appendix 11.A, how much interest will an investment of $10,000 today at 12% interest compounded annually earn over 20 years (rounded to the nearest dollar

Answer 1

Using the compound interest formula. The amount earned on interest on the invested amount would be $86,463

Using the relation :

• $A = P(1 + r)^{t}$
• A = total amount after t years
• P = Amount invested
• r = Rate of investment

Substituting the values into the relation :

$A = 10000(1 + 0.12)^{20}$

A = $96462.93

The interest earned can be calculated thus :

• $96,462.93 - $10,000 = $86,462.93

Hence, interest earned is $86,463

Learn more : https://brainly.com/question/25622836