I posted in business and finance too but this area might be better with some of the answers, tks
2006-10-06 09:16:00 · 7 answers · asked by lunachic3 1 in Science & Mathematics ➔ Mathematics
If you put it in a 4% interest bank account that collected interest on a yearly basis, you could figure it out with an equation:
A(t) = P[1 + (r/n)]^(nt)
P = princple amount (20000)
r = % rate (.04)
n = # times per yer interest given (1)
t = time in years (28)
A(t) = 20000[1 + (.04/1)]^(1*28)
A(t) = 20000(1.04)^(28)
A(t) = 20000(3)
A(t) = 60000
at the end of 28 years you would have tripled your money to $60,000
2006-10-06 09:42:42 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Simple or compound interest? If compound, what is the interest rate and compounding period?
Once you have that information, use the formula for compound interest:
Value = principal (1+r/n)^nt
where r is the rate, n is the number of compounding periods per unit of time, and t is time.
If the rate is 5% APR, compounded quarterly for 28 years, the value is:
20000(1 + .05/4) ^ (4*28)
20000(1.0125)^108
$76,505.64
2006-10-06 16:29:23 · answer #2 · answered by Anonymous · 0⤊ 0⤋
What is the interest rate that the bank pays? You left this information out, we cannot compute.....
2006-10-06 16:23:46 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It depends on the intrest that financial instituation has. It's usually like $100.00 per year on that amount.
2006-10-06 16:24:43 · answer #4 · answered by Anonymous · 0⤊ 0⤋
What percentage was it accruing interest at? Your information is incomplete.
2006-10-06 16:19:27 · answer #5 · answered by forourspam 2 · 0⤊ 0⤋
0
The bank would have eaten it up in service charges long ago.
2006-10-06 16:44:10 · answer #6 · answered by Helmut 7 · 0⤊ 0⤋
a lot.
2006-10-06 16:18:26 · answer #7 · answered by Anonymous · 0⤊ 0⤋