how can you work out compound interest on 12,000 dollars over 12 years?

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how can you work out compound interest on 12,000 dollars over 12 years?

Is there a formula?

2007-08-16 23:02:41 · 3 answers · asked by Anonymous in Business & Finance ➔ Personal Finance

3 answers

Yes there is a formula.
Future Value = Present Value * (1 + interest rate) ^ number of periods

So you answer is:

FV = 12000 * (1 + 0.05) ^ 12 (^ means to the power of)
FV = 12000 * (1.05)^12
FV = 12000 * 1.7958
FV = $21550.27

2007-08-16 23:59:09 · answer #1 · answered by epoulin 2 · 0⤊ 0⤋

If 5% interest, then (1.05^12) times 12,000.= 21,550

2007-08-17 06:17:06 · answer #2 · answered by jimmymae2000 7 · 0⤊ 0⤋

How often does it compound?

2007-08-17 08:19:11 · answer #3 · answered by gogo7 4 · 0⤊ 0⤋