Question

Guided Practice

Find the balance in the account.


$4000 principal earning 6% compounded annually, after 5 years


A.
$5352.90


B.
$6872.20


C.
$4240

Answer 1

A.

$5352.90

Explanation:

A=p(1+r)^t

A=4,000×(1+0.06)^(5)

A=5,352.90

.........................................................

Answer:

The Final Investment Value is

Step-by-step explanation:

we know that

The compound interest formula is equal to

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest in decimal

t is Number of Time Periods

n is the number of times interest is compounded per year

in this problem we have

substitute in the formula above