How much compound interest will $50,000 earn in 10 years at 3.4% APR compounded yearly, providing no deposits or withdrawals are made? Hint: Use the formula A = P(1.00 + r)n.

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wolf1728 wolf1728 · Answer 1 · 2017-11-05T00:23:59+01:00

Total = Principal * (1 + rate)^years
Total = 50,000 * (1.034)^10
Total = 50,000 * 1.3970288911
Total = 69,851.44

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athleticregina athleticregina · Answer 2 · 2019-03-25T18:36:26+01:00

Answer:

Compound interest made on $50,000 for 10 years at 3.4% APR compounded yearly is $ 19851.44

Step-by-step explanation:

Given: Principal $50,000 for 10 years at 3.4% APR compounded yearly,

We have to find the compound interest made on $50,000 for 10 years at 3.4% APR compounded yearly,

Using formula for compound interest

[tex]A=P(1+r)^n[/tex]

Where A is amount

P is principal

r is rate of interest

n is time period

For the given question,

P = $ 50,000

r = 3.4% = 0.034

t = 10

Substitute, we have,

[tex]A=50000(1+0.034)^{10}[/tex]

Simplify, we get,

A = $ 69851.44

Thus, Compound interest = Amount - Principal

C.I = 69851.44 - 50,000

C.I. = 19851.44

Thus, Compound interest made on $50,000 for 10 years at 3.4% APR compounded yearly is $ 19851.44