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
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.
+23 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.
