If you deposit $4,000 in a bank account that pays 6% interest annually, how much will be in your account after 5 years? Do not round intermediate calculations. Round your answer to the nearest cent.

Present value (P) = $4,000

Interest rate (r) = 6% = 0.06

Number of years (n) = 5 years

FV = P (1 + r) n

FV = $4,000 (1 + 0.06) 5

FV = $4,000 (1.06) 5

FV = $4,000 x 1.338225578

FV = $5,353

Explanation:

The future value of the investment is a function of present value multiplied by 1 + interest rate raised to power number of years.