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Let P be the amount of invested money (P = 5,000), and iper cent a year the interest (i = 6).
After one year, the amount becomes P + (i/100)P. This equals P(1 + i/100), so that adding on i per cent is equivalent to multiplying by 1 + i/100.
When interest is compound annually, the new amount is used to calculate the interest due in the second year and so, after two years, the amount becomes P(1 + i/100)^2.
After n years, the amount becomes
P(1 + i/100)^n
which is the formula for compound interest.
So, after 5 years, the amount becomes
P(1 + i/100)^5
= 5,000(1 + 6/100)^5
= 5,000(1 + 0.06)^5
= 5,000(1.06)^5
= 6,691.127888
= 6,691.13
What else can I help you with?
What is 6000 compounded annually at 6 percent for 5 years?
8029.35
What is 350 in 6 percent interest in four years?
It depends on when it's compounded. Left alone and compounded annually, the total is 441.87.
What is will 6000 for 6 years at 8½ percent compounded daily grow to?
If the annual equivalent rate of interest is 8.5 percent then it makes no difference how frequently it is compounded. The amount will grow to 9788.81 On the other hand 8.5 percent interest daily is equivalent to 8.7 trillion percent annually! If my calculation is correct, after 6 years the amount will have grown to 2.85*10198 (NB 10200 = googol squared).
150 if invested for three years at a 9 percent interest rate?
$194.25 if interest is compounded annually. A little more if compounded quarterly, monthly, or daily.
5000 compounded annually at 6 percent for 5 years?
7,093 * * * * * No, that is for 6 years. For 5 years it is 5000*(1.06)5 = 6691.13
What is 6000 compounded annually at 6 percent for 5 years?
8029.35
What is 1.00 compounded 3 percent annually for 100 years?
$19.22 (rounded)
What will 10000 be worth in 30 years at 5 percent?
compounded annually--$43,219 compounded quarterly--$44,402 compounded monthly-- $44,677 compounded daily--$44,812
How much would 500 invested at 7 percent compounded annually be worth after 5 years?
500 invested for 5 years at 7% interest compounded annually becomes 701.28
What is 5000 compounded annually at 4 percent for 5 years?
Invest at an amount of 200000 at a bank that offers an interest rate of 7,6%p.a Compounded annually for a period of 3 years
What is 350 in 6 percent interest in four years?
It depends on when it's compounded. Left alone and compounded annually, the total is 441.87.
Future value of 2000 in 5 years at interest rate of 5 percent?
Compounded annually: 2552.56 Compounded monthly: 2566.72
What is compound interest on 15000 at 6 percent compounded annually for 2 years?
1257
How much would 150 invested at 8 percent compounded annually be worth after 13 years?
$407.94
What is 20000 in 20 years with 7 percent interest compounded annually?
It is approx 77393.69 units of currency.
John invests 10000 for two years at 10 percent compounded annually How much will John have after the two years?
12100
John invests 10000 for three years at 10 percent compounded annually How much will John have after the three years?
13310
