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4000 principal earning 6% compounded annually afteer 5yr

1 Answer

3 votes
compounded annually makes it eaiser

for annually


A=P(1+r)^t

A=future amount P=present amount r=rate in decimal t=time in years

given that present amount is 4000 (what, rupees?)
and rate is 6% or 0.06 and time=5


A=4000(1+0.06)^5

A=4000(1.06)^5
A=5352.9023
round
5352.90 rupees

User David Runger
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