Question

$28,000 invested at a rate of 4% compounded annually; 5 years

Answer 1

$28 compounded on a Yearly basis over the course of 5 years at a 4% interest rate would be worth:

$34

Answer 2

$\bf \qquad \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{compounded amount}\\ P=\textit{original amount deposited}\to &\ 28,000\\ r=rate\to 4\%\to \frac{4}{100}\to &0.04\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{annually, meaning once} \end{array}\to &1\\ t=years\to &5 \end{cases}$