Question

Find the balance in the account after the given period. $4000 principal earning 6% compounded annually, after 5 yr

Answer 1

A = P(1+r/n)^nt 

A = 4000(1+.06)^5 

n = 1 since it is compounded annually.

Answer 2

Answer:

The balance in the account after the given period is $\ 5,352.90$  

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  

$t=5\ years\\ P=\ 4,000\\ r=0.06\\n=1$  

substitute in the formula above  

$A=\ 4,000(1+\frac{0.06}{1})^{1*5}=\ 5,352.90$