Question 611647: I have 2 questions 1 is that if sandra invested 30,000 at 8% compounded annually. what will be her total balance at the end of 2 years?
and #2 is 20,000 for 2 years at 6% compounded annually. how much interest is earned for the investment?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! if sandra invested 30,000 at 8% compounded annually. what will be her total balance at the end of 2 years?
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A(t) = P(1+(r/n))^(nt)
A(2) = 30,000(1+(0.08/1))^(1*2)
A(2) = 30,000(1.08)^2
A(2) = $34,992
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#2 is 20,000 for 2 years at 6% compounded annually. how much interest is earned for the investment?
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Interest = A(t) - P
= 20000(1.06)^2 - 20000
= 20000[1.06^2-1]
= 20000(0.1236)
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= $2472
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Cheers,
Stan H.
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