SOLUTION: How much interest is earned for the investment? $20,000 for 2 years at 6% compounded annually

 

Hi

$20,000 for 2 years at 6% compounded 'annually'

In General A = 

A = Accumulated Amount

P= principal = $20,000

r= annual rate = .06

n= periods per year = 1

t= years = 2

 A =  = $22,472 

$22,472 - $20,000 = $2,472 earned in Interest