Answer: To calculate the value of an investment after a certain number of years, you need to know the initial investment amount, the interest rate, and the number of years. In this case, the initial investment amount is $5,000, the interest rate is 4%, and the number of years is 5.
First, you need to calculate the total interest earned on the investment. This can be done by multiplying the initial investment amount by the interest rate, and then dividing by 100 to convert the result to a percentage. In this case, the total interest earned would be $5,000 * 4 / 100 = $200.
Next, you need to add the total interest to the initial investment amount to find the total value of the investment after the specified number of years. In this case, the total value of the investment after 5 years would be $5,000 + $200 = $5,200.
Therefore, if $5,000 is invested at an interest rate of 4% each year, the value of the investment after 5 years would be $5,200.
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