5,000 is invested at an interest rate of 8% compounded annually. how much is the investment return after 20 years?

Question

asked Mar 25, 2022 203k views

2 Answers

Martin Andersen · Answer 1 · 2022-03-26T14:57:28+0000

Answer:

≈ 23305

Explanation:

The amount A is calculated as

A = P
(1+r)^(t)

P is the principal

r is the interest rate

t is the time in years

A = 5000
(1+0.08)^(20)

= 5000
(1.08)^(20)

≈ 23305 ( to the nearest whole number )