Question

$4000 principal earning 6% compounded annually after 5 years

Answer 1

If $4000 is the principal, compounded annually at 6%per annum for five years, then-
Amount=principal *(1+rate/100)^5
=4000*(1+6/100)^5
=4000*(53/100)^5
=5352.90
Therefore, Compound Interest =5352.90-4000
=$1352.90
Please recheck the calculation.