Question

$4000 principal earning 6% compounded annually after 5 years "how to solve"

Answer 1

A=p(1+r)^t
A=4,000×(1+0.06)^(5)
A=5,352.90

Answer 2

Answer:

The Final Investment Value is $5,352.90$  

Step-by-step explanation:

we know that    

The compound interest formula is equal to  

$A=P(1+\frac{r}{n})^{nt}$  

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  

$t=5\ years\\ P=\ 4,000\\ r=0.06\\n=1$  

substitute in the formula above  

$A=\ 4,000(1+\frac{0.06}{1})^{1*5}=5,352.90$