Answer:
$4,110
Explanation:
The applicable formula is
A= P( 1 + r)^n
In this case
A is the amount after five years = $5000
P= principal amount = ???
r= interest rate =4%
n = five years
$5000 = p( 1+ 0.04)^5
$5000=p(1.004)^5
$5000= p1.21665
P=$5000/1.21665290
P=4,109.64
Principal amount=$4,110
