Dr. Clarence invested $5000 in an account that draws 3.2% interest, compounded annually. What is the total value of the account

Question

AleksAgata [21]

3 years ago

15

Dr. Clarence invested $5000 in an account that draws 3.2% interest, compounded annually. What is the total value of the account

after 5 years?

Mathematics

1 answer:

DanielleElmas [232] · Answer 1 · 2022-02-11T01:20:31+03:00

DanielleElmas [232]3 years ago

3 0

Given that the amount invested was compounded annually, the total value of the investment after 5 years will be:
FV=P(1+r/100)^n
where:
FV=future value
p=principle
r=rate
n=time
hence
FV=5000(1+3.2/100)^5
FV=$5,852.865