Question

If $5000 is invested at an interest rate of 4% each year, what is the value of the investment in 5 years? write an exponential function and solve. a. y = 5000 (1.04) superscript 5;$6083.26 b. y = 5000 (5) superscript 1.04;$26,662.37 c. y = 1.04 (5000) superscript 5;$6830.26 d. y = 5 (5000) superscript 1.04;$35,147.85

Answer 1

The compound interest amount after 5 years be $6,083.26.

What is compound interest?

Compound interest, also known as interest on principal and interest, is the practice of adding interest to the principal amount of a loan or deposit.

Compound interest is when you receive interest on both your interest income and your savings.

If this value was compounded in 5 years, then we are going to utilize the compound interest formula to solve it.

$A = p(1+r)^n$

Where A be the amount accumulated for the entire period. 

p be the Money invested

r be the Interest rate per year

n be the period the money was invested. 

$A = 5000(1+4/100)^5$

The exponential function is

$A=5000*1.04^5$

= 5000 $*$ 1.216652902

= 6,083.264512

The amount after 5 years be $6,083.26

The compound interest amount after 5 years be $6,083.26.

To learn more about compound interest refer to:

brainly.com/question/24274034

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