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Dr. Clarence invested $5000 in an account that draws 3.2% interest, compounded annually. What is the total value of the account after 5 years?

Dr. Clarence invested $5000 in an account that draws 3.2% interest, compounded annually. What is the total value of the account after 5 years?
asked 165k views
4 votes
Dr. Clarence invested $5000 in an account that draws 3.2% interest, compounded annually. What is the total value of the account after 5 years?

asked
User Extraneon
by
7.5k points

1 Answer

7 votes
Given that the amount invested was compounded annually, the total value of the investment after 5 years will be:
FV=P(1+r/100)^n
where:
FV=future value
p=principle
r=rate
n=time
hence
FV=5000(1+3.2/100)^5
FV=$5,852.865
answered
User Peter Sirka
by
8.6k points
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