Question

if 11600 dollars is invested at an interest rate of 10 percent per year, find the value of the investment at the end of 5 years for the following compounding methods, to the nearest cent.

Answer 1

The compound interest after 5 years is $7,081.916.

Compound interest:

Compound interest is when you earn interest on both the money you've saved and the interest you earn.

Here we have to find the interest earned after 5 years.

Data given:

Principle (P) = $11600

rate(r) = 10%

time(t) = 5 years.

Formula to find compound interest:

CI = P( 1 + r/100$)^{t}$ - P

Now put the values in the formula.

CI = 11600 ( 1 + 10/100$)^{5}$ - 11600

  = 18681.916 - 11600

  = 7081.916

Therefore the compound interest is $7081.916.

To know more about compound interest refer to the link given below:

https://brainly.com/question/12325365

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