the value five years from now will be. $14,918
What Is Compound Interest?
Compound interest is the name for the interest on a loan or deposit that is computed based on both the starting principle and the accumulated interest from previous periods (also known as compounding interest). According to legend, Italy in the 17th century is when compound interest, also referred to as "interest on interest," first appeared. It will accelerate the growth of a sum more quickly than simple interest, which is calculated merely on the principal amount.
The rate at which compound interest builds up depends on how often it is compounded. With more compounding periods, the compound interest rises. If $100 is compounded at 10% annually, for example, the amount of compound interest will be lower than if $100 is compounded at 5% semi-annually throughout the same time period.
Compound Interest information can be found at brainly.com/question/24274034
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