Can you help me with this one
1 answer:
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After 5 years the amount in the account will be $ 487.
<u>Step-by-step explanation:</u>
Compound Interest, A =
Where A denotes the investment's future value
P is the Principal amount = $ 400.00
r is the rate of interest annually in decimals = 0.04
n is the no. of times the interest is compounded per unit time, t = 1
t - the number of years or days or months the amount is invested = 5 years
Now we have to plug in those values in the above formula as,
A =
= 400(1+ 0.04)⁵
= 400(1.04)⁵
= 486.66 ≈ $ 487