Asked by tanuj

principal 224000,rate of interest 2%, time 16 years,what is compound interest.

Answers

Answered by Steve
224000(1.02^16 - 1)
Answered by Bosnian
A = P ( 1 + r / n ) ^ ( n * t )

A = total amount
P = principal or amount of money deposited,
r = annual interest rate
n = number of times compounded per year
t = time in years

In this case :

P = 224000

R = 2 % = 2 / 100 = 0.02

n = 1

t = 16


A = P ( 1 + r / n ) ^ ( n * t )

A = P ( 1 + r / 1 ) ^ ( 1 * t )

A = P ( 1 + r ) ^ t

A = 224000 ( 1 + 0.02 ) ^ 16

A = 224000 * 1.02 ^ 16

A = 224000 * 1.37278571

A = 307503.99904

A = 307504
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