4% compound interest per annum. You invest $5200. After 5 years how much do you have total ?

1 Answer
Feb 26, 2018

$6326.60

Explanation:

FV=P(1+rn)nt

where

FV = Future Value
P = principal invested
r = interest rate (as a decimal)
n = number of compounding periods per year
t = number of years invested

Since your problem is annual interest, n doesn't play a role.

Thus, we have:

FV=5200(1+.04)5=5200(1.04)5=$6,326.60