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Answer :

we know that

The compound interest formula is equal to

[tex]A=P(1+\frac{r}{n})^{nt}[/tex]

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest  in decimal

t is Number of Time Periods

n is the number of times interest is compounded per year

in this problem we have

P=$175,000

r=3.2%=3.2/100=0.032

n=12

t=19 years

Find the value of A

substitute in the formula

[tex]\begin{gathered} A=175,000(1+\frac{0.032}{12})^{12\cdot19} \\ A=\$321,171.98 \end{gathered}[/tex]

Find out the interest

I=A-P

I=321,171.98-175,000

I=$146,171.98

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