You invest $20,000 at an interest rate of 5.2% compounded annually. What is the total in your account after 3 years?

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Answer 1 · 2016-05-19T23:42:09

#20000xx5.2/100xx3+20000#

20000 is the amount you invested, let #20000=m#

5.2% is the percentage of interest you earn for #m#, #5.2%=i#

3 years is the amount of time #m# stays in the bank #3# years= #t#

and compounded annually means #20000# earns #5.2% #of
#20000# once a year

before any solutions are made we need to convert the interest rate to a decimal, just divide the percentage by 100.

#5.2/100=0.052#, so really #i=0.052#

#mxxixxt+m=#answer

#20000xx0.052xx3+20000=23120#

answer #=$23120#

answer #- m# #=# the amount of interest earned

#23120-20000=3120#

the amount of interest earned #=$3120#