Question

If $1,000 is invested at 16% interest, compounded annually,

for five years, what is the ending balance?

Answer 1

equation; P=A(1+r/n)^nt

P=principal amount

A=value of investment

r= interest rate in decimals

n=number of times compounded

t=time in years

P=1000(1+0.16/12)^12(5)= $2213.8 rounded

Explanation: