Question

You invest 300$ at 4% intrest compounded every year what will your balance be after 5 years?

Answer 1

Answer:

Option D $\ 365.00$  

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  

$t=5\ years\\ P=\ 300\\ r=0.04\\n=1$  

substitute in the formula above  

$A=300(1+\frac{0.04}{1})^{1*5}$  

$A=300(1.04)^{5}$  

$A=\ 365.00$