Answer
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A = 5,938.43
↓Steps Explained:↓
How much is 5000 worth after 5 years
using an annual interest rate of 3.5%
compounded annually?
Calculate Accumulated Balance
A = B(1 + i)n
where A = accumulated balance
B = opening balance
i = Annually interest rate
and n = number of periods
Plugging in our values
A = 5,938.43
A = 5000(1.035)5
A = 5000(1.1876863056469)
How much interest was earned?
Interest Earned = Accum. Value - Start Balance
Plug in our values
Interest Earned = 5,938.43 - 0.00
Interest Earned = 5,938.43
5938.43
Final Answer
A = 5,938.43Take the Quiz
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