Answer:
$11,911.28
Step-by-step explanation:
A = P(1 + r/n)^(nt)
Where:
A = the final amount
P = the principal amount (initial deposit)
r = annual interest rate (as a decimal)
n = number of times the interest is compounded per year
t = number of years
In this case:
P = $10,000
r = 4% = 0.04 (since it's given as a percentage)
n = 12 (compounded monthly)
t = 20
Plugging the values into the formula, we get:
A = 10,000(1 + 0.04/12)^(12*20)
Calculating this, we find that the final amount after 20 years is approximately $21,911.28.
To find the interest earned, we can subtract the initial deposit from the final amount:
Interest earned = A - P = $21,911.28 - $10,000 = $11,911.28.