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kykrilka [37]
3 years ago
6

4000 principle earning 6% compounded annually after 5 years

Mathematics
1 answer:
Dmitrij [34]3 years ago
7 0
Principal, P= 4000
interest = 6%/4 = 0.015 (per quarter)
Number of periods, n = 5*4 =20 quarters

Compound interest formula:
Future value:
F=P(1+i)^n
=4000(1+.015)^{20}
F=5387.42   to the nearest cent.
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