SOLUTION: What is the compound interest on 200000 for 4 years at 6% annually

Algebra ->  Finance -> SOLUTION: What is the compound interest on 200000 for 4 years at 6% annually      Log On


   

Question 603311: What is the compound interest on 200000 for 4 years at 6% annually
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
 

Hi,

Note:  In General: A+=+P%281%2Br%2Fm%29%5Emt

A = Accumulated Amount 

P= principal = $200,000

r= annual rate = .06

m= periods per year = 1

t= years = 4

A+=+%24200000%281%2B.06%2F1%29%5E4

A+=+%24200000%281.06%29%5E4

A= $252,495.39

interest earned in 4 years = $52,495.39