Find the missing final amount​ (future value) and interest earned.

Question

Principal
Rate
Compounded
Time
Final
Amount
Compound
Interest
​$7600
5
1
2​%
annually
27 years
​_____
​_____

Answer 1

To find the missing final amount, we can use the formula:

Final Amount = Principal * (1 + (Rate/Compounded) )^(Compounded * Time)

Using the given values:

Principal = $7600
Rate = 2%
Compounded = 1 (annually)
Time = 27 years

Final Amount = 7600 * (1 + (0.02/1) )^(1 * 27)

Calculating this:

Final Amount ≈ $13,429.27

To find the interest earned, we can subtract the principal from the final amount:

Interest = Final Amount - Principal

Calculating this:

Interest ≈ $6,829.27

Therefore, the missing final amount is approximately $13,429.27 and the interest earned is approximately $6,829.27.