Question
Calculate the compound interest earned when $15,000 is invested for 6years
Answers
GPT 3.5
The formula to calculate compound interest is:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment/loan, including interest
P = the principal investment amount (initial deposit or loan amount)
r = the annual interest rate in decimal form
n = the number of times that interest is compounded per year
t = the number of years the money is invested for
Given that $15,000 is invested for 6 years, we need to know the interest rate and the number of times interest is compounded per year to calculate the compound interest earned.
Let's assume the interest rate is 5% and it is compounded annually:
P = $15,000
r = 0.05
n = 1
t = 6
A = 15000(1 + 0.05/1)^(1*6)
A = 15000(1 + 0.05)^6
A = 15000(1.05)^6
A = 15000*1.340100625
A = $20,101.51
Therefore, the compound interest earned when $15,000 is invested for 6 years at a 5% annual interest rate compounded annually is $5,101.51.
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment/loan, including interest
P = the principal investment amount (initial deposit or loan amount)
r = the annual interest rate in decimal form
n = the number of times that interest is compounded per year
t = the number of years the money is invested for
Given that $15,000 is invested for 6 years, we need to know the interest rate and the number of times interest is compounded per year to calculate the compound interest earned.
Let's assume the interest rate is 5% and it is compounded annually:
P = $15,000
r = 0.05
n = 1
t = 6
A = 15000(1 + 0.05/1)^(1*6)
A = 15000(1 + 0.05)^6
A = 15000(1.05)^6
A = 15000*1.340100625
A = $20,101.51
Therefore, the compound interest earned when $15,000 is invested for 6 years at a 5% annual interest rate compounded annually is $5,101.51.