Formula: P=F(1+i)n F=P(1+i)n 1. How much must be invested now to grow to $20,000 in six years if the annual interest rate is 4.0 percent compounded 1) annually, 2) semiannually 3) monthly? Formula: P=F(1+i)n 2. What total amount (Principal and interest) must be paid at the end of three years if $10000 is borrowed from a bank at 4 percent annually rate compounded 1) annually, 2) semiannually, 3) monthly 4) daily Interest on principal plus previously accumulated interest F=P(1+i)n Where F= Future worth P= Principal amount n= Number of interest periods i= Interest rate per period (as a decimal, not as a percent)