If you banked $27,778 today at an interest rate of 20%,how much will you have in two years' time?

Question

Quizplus · Accepted Answer

The amount after two years can be calculated using the formula for compound interest: A = P(1 + r)^n, where A is the amount of money accumulated after n years, including interest, P is the principal amount (the initial amount of money), r is the annual interest rate (decimal), and n is the time the money is deposited for in years. Here, P = $27,778, r = 20% = 0.20, and n = 2 years. So, A = $27,778 * (1 + 0.20)^2 = $27,778 * 1.44 = $40,000.

If You Banked $27,778 Today at an Interest Rate of 20%,how