$100 will become after 20 years at 5% p.a compound interest amount of. .....?

1 Answer
Jun 26, 2018

#$265#

Explanation:

Compound interest is given by the equation:

#A_f=A_0(1+r/100)^n#

where:

  • #A_0,A_f# are the initial and final amounts of money, respectively

  • #r# is the rate of compound interest

  • #n# is the number of years passed

So, we get:

#A_f=$100(1+5/100)^20#

#=$100*1.05^20#

#=$100*2.65#

#=$265#