zitterkoph zitterkoph

17-12-2018
Mathematics

contestada

f the present value of an investment is $5,000, what will be its future value in three years if you apply a compound interest of 5 percent to it?

Respuesta :

lexidecker243 lexidecker243

17-12-2018

Answer:

6381.4078125 or $6381.41

Step-by-step explanation:

Pn- future value of P0

P0- original amount invested

r- rate of interest

n- number of compounding periods (months, years, etc.)

Pn = P0(1+r)n

= $5000(1+0.05)5

= 6381.4078125 or $6381.41

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