Answer to Question #171411 in Financial Math for King

Question

Compound Amount

Adah discovered a saving account left to her by a rich uncle while cleaning his old house. When annually if she is now 20 years old.how much is the account worth

Answer 1

Compound Interest

$A= P(1+r/n)^{nt}$

Where

A= Total Amount

P= Principal amount

r= annual rate of interest

n= Number of times interest is compounded in a year

t= how long the money is compounded

where n = 12 and t= 20

A= P ( 1+r/12)²⁴⁰

or

A =P (1+i)²⁰