The total compound interest is $14,562.96.The final balance is $42,562.96.Compound interest, also known as interest on principal and interest, is the practice of adding interest to the principal amount of a loan or deposit.P is the principal, I is the annual interest rate, and n is the quantity of periods.
P is the principal, I is the annual interest rate, and n is the quantity of periods. The compound interest formula is ((P*(1+i)n)-P).
((P*(1+i)n)-P) =
(28000*(1+7) ^4)-28000
The final balance is $42,562.96.
The total compound interest is $14,562.96.
Compound interest, also known as interest on principal and interest, is the practice of adding interest to the principal amount of a loan or deposit.
The interest you earn on interest is known as compound interest. Simple math may be used to demonstrate this: if you have $100 and it generates 5% interest annually, you will have $105 at the end of the first year. You will wind up with $110.25 at the conclusion of the second year.
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