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21 October, 05:15

Dr. Clarence invested $5000 in an account that draws 3.2% interest, compounded annually. What is the total value of the account after 5 years?

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  1. 21 October, 05:29
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    Given that the amount invested was compounded annually, the total value of the investment after 5 years will be:

    FV=P (1+r/100) ^n

    where:

    FV=future value

    p=principle

    r=rate

    n=time

    hence

    FV=5000 (1+3.2/100) ^5

    FV=$5,852.865
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