Question

If 5000 dollars is invested in a bank account at an interest rate of 7 per cent per year, find the amount in the bank after 6 years if interest is compounded annually

Answer 1

well the formula is

\[A = P(1 + \frac{r}{100})^n\]

A is the future value, P is the principal(amount invested) r is the interest rate and

n is the number of time periods.

In your question you have

P = 5000, r = 7 and n = 6

substitute the values and evaluate.

Answer 2

thanks!