Question

Find the balance in each account after the given period. $4,000 principle earning 6% compounded annually, after 5 years? (This is supposed to be Exponential Growth, and i did it how I thought I should and wound up with a ridiculous answer.)

Answer 1

balance = 4000 (.06) 5

Can you do that? that's the equation I'll leave you to solve. If you need help ask me :)

Answer 2

4,000 x 6% x 5 = 1,200

4,000 + 1,200 = 5,200

the balance in the account after 5 years would be $5,200