Question

Calculates the interest using compound interest cc 20,000(1+(.0425)/(4))^(20(4))

Answer 1

To calculate compound interest, use the formula A = P(1 + r/n)^(nt), where A is the final amount, P is the principal, r is the interest rate, n is the number of times compounded per year, and t is the number of years.

Step-by-step explanation:

Calculating Compound Interest:

To calculate compound interest, you can use the formula A = P(1 + r/n)^(nt), where A is the final amount, P is the principal (initial amount), r is the annual interest rate, n is the number of times compounded per year, and t is the number of years.

In this case, the principal is $20,000, the annual interest rate is 4.25%, compounded quarterly (n = 4), and the time is 20 years. Plugging the values into the formula:

A = 20000(1 + (0.0425)/4)^(20(4))

Calculating the equation will give you the final amount after 20 years with compound interest.