To solve this problem, we will use the formula for compound interest, which is:

A = P (1 + r/n)^(nt)

Where:
A = the amount of money accumulated after n years, including interest.
P = the principal amount (the initial amount of money)
r = annual interest rate (in decimal)
n = number of times that interest is compounded per year
t = time the money is invested for in years

In this case, we have:
P = $25,207
r = 6% or 0.06 (in decimal form)
n = 1 (since the interest is compounded annually)
t = 18 years

Substituting these values into the formula, we get:

A = $25,207 * (1 + 0.06/1)^(1*18)
A = $25,207 * (1.06)^18
A = $25,207 * 2.8983
A = $73,082.79

The interest earned is the final amount minus the initial principal:

Interest = A - P
Interest = $73,082.79 - $25,207
Interest = $47,875.79

So, the interest earned from this investment after 18 years is $47,875.79.

Question

To solve this problem, we will use the formula for compound interest, which is:

A = P (1 + r/n)^(nt)

Where:
A = the amount of money accumulated after n years, including interest.
P = the principal amount (the initial amount of money)
r = annual interest rate (in decimal)
n = number of times that interest is compounded per year
t = time the money is invested for in years

In this case, we have:
P = $25,207
r = 6% or 0.06 (in decimal form)
n = 1 (since the interest is compounded annually)
t = 18 years

Substituting these values into the formula, we get:

A = $25,207 * (1 + 0.06/1)^(1*18)
A = $25,207 * (1.06)^18
A = $25,207 * 2.8983
A = $73,082.79

The interest earned is the final amount minus the initial principal:

Interest = A - P
Interest = $73,082.79 - $25,207
Interest = $47,875.79

So, the interest earned from this investment after 18 years is $47,875.79.

Knowee AI · Accepted Answer

To solve this problem, we will use the formula for compound interest, which is:

A = P (1 + r/n)^(nt)

Where:
A = the amount of money accumulated after n years, including interest.
P = the principal amount (the initial amount of money)
r = annual interest rate (in decimal)
n = number of times that interest is compounded per year
t = time the money is invested for in years

In this case, we have:
P = $25,207
r = 6% or 0.06 (in decimal form)
n = 1 (since the interest is compounded annually)
t = 18 years

Substituting these values into the formula, we get:

A = $25,207 * (1 + 0.06/1)^(1*18)
A = $25,207 * (1.06)^18
A = $25,207 * 2.8983
A = $73,082.79

The interest earned is the final amount minus the initial principal:

Interest = A - P
Interest = $73,082.79 - $25,207
Interest = $47,875.79

So, the interest earned from this investment after 18 years is $47,875.79.

As a savings plan for college, when Arwyne was born, his parents deposited $25,207 in an account paying 6% compounded annually. How much is the interest earned from this investment after 18 years?

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