Question

Find the compound interest on $7000 invested over 7 years at 12% per annum, compounded annually.

Answer 1

$15,474.77

Explanation:

compound interest = amount invested × ( 1 + percentage)^7

compound interest = 7000 × (1 + 0.12)^7

= 7000 × 1.12^7

= 7000 × 2.2106814074

= 15,474.7698518 (rounded to 2 decimal places)

= $15.474.77