Question

I just need help with setting up the first question

Answer 1

$12,155.06

Explanation:

Using the compound interest formula;

A= P(1+r)^n

P = $10,000

rate r = 5% = 0.05

Time r = 4years

Substitute

A = 10,000(1+0.05)^4

A = 10,000(1.05)^4

A = 10,000(1.21550)

A = 12,155.06

Hence the amount after 4 years will be $12,155.06