After adding interest the sum would be worth $657.51 .
Interest is the amount paid over and above the original amount to a lender or depositor by a borrower or deposit-taking financial institution at a predetermined rate in the domains of finance and economics (the amount borrowed).
- Interest differs from any fees the borrower may be required to pay to the lender or another party.
- interest also contrasts from a dividend, which is cash distributed to shareholders (owners) by a corporation from its profit or reserve, but not at a predefined rate or proportionally; rather, it is a portion of the reward or interest gained by risk-taking businessmen when revenue is made that surpasses all expenditures.
Interest when the principal is $5 , time is 100 years and rate is 5%.
We know that from compound interest:
Amount = principal (1 + rate)ⁿ
Therefore
Amount = 5 (1 +0.05)¹⁰⁰
Amount = $657.5062...
Amount ≈ $657.51
Therefore adding interest the sum would be worth $657.51