How do you figure compound interest???

Question

Use the formula for compound interest to find A.

A= P(1+r) n

P=$20000, r=0.14, n=4 years.

Round to the nearest cent.

Answer 1

the underlying compound interest formula that you want to use to solve here is

A = P(1 + r)^n

for this scenario that means taking

A = 20000(1 + 0.14)^4

A = 20000(1.14)^4

A = 33,779.20

meaning that the final amount in this scenario is $33,779.20

Answer 2

A = P(1+r)ⁿ

A = 20000 * (1 + .14)⁴

A = 20000 * 1.68896016

A = $33,779.20