Question

If 22000 is invested at 12% interest compounded quarterly, find the interest earned in 12 years.

Answer 1

Interest earned in 12 years = 57178

Explanation:

`A=P(1+rn)n⋅t`

A = total amount

P = principal or amount of money deposited,

r = annual interest rate

n = number of times compounded per year

t = time in years

then

P=22000 , r=12% , n=12 and t=12 years

putting these value

`A=22000(1+0.12/12) 12⋅8`

= 22000(2.5992729255593856)

= 57178