Question

If 5000 dollars is invested in a bank account at an interest rate of 4 per cent per year, Find the amount in the bank after 5 years if interest is compounded annually:

Answer 1

Explanation:

FV = PV (1+i)^n FV = Future Value PV = present Value = 5000

i = decimal interest per period = .04 n = periods = 5 (years)

$ 5000( 1.04)^5 = $ 6083.26