Question

Dr. Clarence invested $5000 in an account that draws 3.2% interest, compounded annually. What is the total value of the account after 5 years?

Can you please clarify how you get your answer because I solved this to my notes and it said it was wrong.

Answer 1

It's simple, you just have to times everything. 5000 x 3.2% x 5 years. After calculating these, 3.2 is as 0.032 so there would be three decimal places. So then it will e 5000 x 0.032 x 5