3 years ago

a $4,000.00 principal earns 5% interest, compounded annually. After 4 years, what is the balance in the account?

1 answer:

8 0

Interest rate is 5% annually. After 4 years relative value of interest will be 1.05^4
Now we multiply that with starting funds and get
4000* 1.05^4 = 4862.03

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