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 $44,222,812.38
Explaination:
Compund interest formula is P(1+(rn))(nt) where P is the principle amount in this case 21$ 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.
