Question

If $5000 is invested at a rate of 3% interest

Answer 1

The value of the investment in 5 years is $5805.9

What is Interest ?

Interest is the amount earned over years for the amount invested.

It is given that

Principal = $5000

Rate = 3%

Compounded Quarterly

Time = 5 years

Amount = ?

The Amount is given by the formula

Amount = P( 1 + (r/n))ⁿˣ

Here n = t = time period for which the investment has been done.

Amount = 5000( 1+(3/4 * 100)⁴ˣ⁵

Amount = 5000 (1.16)

Amount = $ 5805.9

Therefore , The value of the investment in 5 years is $5805.9

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