SOLUTION: Could someone please help me answer this question, the wording of this question throws me off slightly: Calculate the following to the nearest penny The interest after 4 years on

Question 894472: Could someone please help me answer this question, the wording of this question throws me off slightly: Calculate the following to the nearest penny
The interest after 4 years on �88500.00 invested at 5% p/a compound interest.
Is the question telling me to find out the difference between the original price and the price after 4 years with interest, or is it simply asking me to find the total value of the money after the 4 years with interest?
Thank you for taking a moment of your time to help me :)
Answer by rothauserc(4718) (Show Source): You can put this solution on YOUR website!
The problem is asking for the interest accrued, we use the following formula
FV = PV � (1+r)^n
where FV = Future Value
PV = Present Value
r = annual interest rate
n = number of periods
FV = 88500 x (1+0.05)^4
FV = 107572.30
therefore interest accrued is = 107572.30 - 88500 = 19072.30 pounds

RELATED QUESTIONS
Could someone please help me answer this question? If you are looking at a graph of a... (answered by gonzo,Earlsdon)

Could someone show me the steps to this question. If log2y=15, find the value of... (answered by Alan3354)

Could someone please help me with this question. I have asked it a while ago and I just... (answered by stanbon)

could please help me find the value of this question... (answered by richwmiller)

Hi I recently received this question from a peer and I am unable to solve it due to the... (answered by ikleyn)

Please could someone help me with this question??? Find the product of each pair of... (answered by josmiceli)

(Can someone please help me with this question, thanks) Find the function value.... (answered by richard1234)

Could someone please help me graph this function: Question: f(x)= 3 - 4x Thanks in (answered by Alan3354)

I was wondering if someone could please help me answer this question. The question is as... (answered by solver91311)