+0  
 
0
73
2
avatar

JJ watt decided to invest $21 million he received for his 2016 season. he put it in an American fund which pays an average of 12% compound interest. How much interest will this investment earn in 10 years

Guest Mar 9, 2017
Sort: 

2+0 Answers

 #1
avatar
0

FV = PV x [1 + R]^N

FV =21E6 x 1.12^10

FV =$65,222,812.38, so total interest will be:

$65,222,812.38 - $21,000,000 =$44,222,812.38.

Guest Mar 9, 2017
 #2
avatar+23 
0

Interest: $65,222,812.38; Total Interest is $44,222,812.38

 

Explaination:

Compund interest formula is \(P(1+(\frac{r}{n}))^{(nt)}\) where P is the principle amount in this case 21$ mil. N is the rate per year (I assuming annually).  R is the decimal rate (.12). T is the time in years (10yrs). And once you plug that in it should look like \(21000000(1.12)^{(12)}\) (I simplified some stuff). Then for the total interest just subtract the Interest from the principle amount.

SilverAg  Mar 9, 2017

13 Online Users

avatar
avatar
avatar
We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners.  See details