Question

ASAP Calculate the ending balance of investing $18,000 at 9% Annual Compound Interest for 20 years. Question 2 options: $82,879.39 $100,879.39 $32,400 $50,400

Answer 1

$100,879.39

Explanation:

Answer 2

`\$100,879.39`

Explanation:

we know that

The compound interest formula is equal to

`A=P(1+(r)/(n))^(nt)`

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest in decimal

t is Number of Time Periods

n is the number of times interest is compounded per year

in this problem we have

`t=20\ years\\ P=\$18,000\\ r=9\%=9/100=0.09\\n=1`

substitute in the formula above

`A=18,000(1+(0.09)/(1))^(1*20)`

`A=18,000(1.09)^(20)`

`A=\$100,879.39`