Question

$35,000 at 4% for 5 years   calculate the compound interest

Answer 1

$42582.852

Explanation:

To calculate this you would first need to convert 4% into a decimal.

To do this you would divide 4 by 100, this gives you 0.04. Then you would add 0.04 to 1, This gives you 1.04. Then you would multiply 35000 by 1.04 to the power of how many years, in this case it is 5.

1) Convert 4% into a decimal.

`4/100=0.04`

2)Add 1 to 0.04.

`1+0.04=1.04`

3) Multiply 35000 by 1.04 to the power of 5.

`35000*1.04^(5) =42582.852`

4) The compound interest is $42582.852