<PRE><B>Question 327111</B>
P is the principal (the initial amount you borrow or deposit)

r is the annual rate of interest (percentage)

n is the number of years the amount is deposited or borrowed for.

A is the amount of money accumulated after n years, including interest.

When the interest is compounded once a year:

A = P(1 + r)^n

A = 20,000(1 + 0.08)^20

A = 20,000(4.660957144)

A = 93219.14288 + $100 for 20 years or $2000

A = 97219.14288 or about $97,219

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