Question

Assume you invest $5,000 in an account paying 8% interest compounded annually. How much money will be in the account after 5 years?

Answer 1

$7346.64

Explanation:

Amount after 5years=P(1+r/100)^t

let A = amount after 5years

A=$5000(1+8/100)^5

A=$7346.64 to 2 decimal places