Ask Question
7 February, 06:19

If you deposit $4,000 in a bank account that pays 6% interest annually, how much will be in your account after 5 years? Do not round intermediate calculations. Round your answer to the nearest cent.

+3
Answers (1)
  1. 7 February, 08:17
    0
    Present value (P) = $4,000

    Interest rate (r) = 6% = 0.06

    Number of years (n) = 5 years

    FV = P (1 + r) n

    FV = $4,000 (1 + 0.06) 5

    FV = $4,000 (1.06) 5

    FV = $4,000 x 1.338225578

    FV = $5,353

    Explanation:

    The future value of the investment is a function of present value multiplied by 1 + interest rate raised to power number of years.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “If you deposit $4,000 in a bank account that pays 6% interest annually, how much will be in your account after 5 years? Do not round ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers