What is the total amount and the amount of interest earned on $6,500 at 6% for 25 years?

Question

Mathematics

Nigel Peterson

22 August, 16:25

What is the total amount and the amount of interest earned on $6,500 at 6% for 25 years?

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Answers (1)

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Elijah Castaneda · Answer 1

The total amount of interest will be found using compound interest formula:

A=p (1-r/100) ^n

A=future amount

p=principle

r=rate

n=time

From the information given:

p=$6500, r=6%, n=25 years

thus

A=6500 (1+6/100) ^25

A=6500 (1.06) ^25

A=$27,897.16

Answer: 27897.12-6500=$$21397.2