Aldo deposited 4000 into an account with 5.6% interest, compounded annually. Assuming that no withdrawals are made, how much will he have in the account after 5 years?

Answer 1

For this question, you want to use the formula for interest compounded annually:

A = P (1+r) ^T

where:

1. P is the initial amount of money
2. r is the interest rate, in decimal form
3. t is the number of years, and
4. A is the total amount of money in the account after those years.

As long as no money is being withdrawn, you should be able to simply plug your values into the above formula, and recieve your answer. In this case:

A = 4000 (1+.056) ^5

A = 4000 ( 1.056)^5

A = ~$5252.66

Hope this helps! Please feel free to comment if you have more questions :)

Answer 2

4000(1+.056)^5

4000* 1.31316588

5252.66