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Popular Word Problems >

If 16, 000 is invested in an account for 25 years. Calculate the total interest earned at the end of 25 years if the interest is 5% compounded annually

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Solution

If16,000isinvestedinanaccountfor25years.Calculatethetotalinterestearnedattheendof25yearsiftheinterestis5%compoundedannually

Solution

Interest:38181.68
Solution steps
Translate the problem into an equation:54181.67905…=16000+I
Solve for I,54181.67905…=16000+I:I=38181.68
Interest:38181.68

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