If $40000 is put in a savings account paying interest of 4% compounded annually what amount will be in the account at the end of 5 years?
A) $32878
B) $48000
C) $48620
D) $48666

Question

Quizplus · Accepted Answer

The formula for compound interest is $ A = P(1 + r/n)^{nt} $. Here, $ P = 40000 $, $ r = 0.04 $, $ n = 1 $, and $ t = 5 $. Plugging in these values, $ A = 40000(1 + 0.04)^5 = 40000 \times 1.2166529 = 48666.116 $, which rounds to $48666.

If $40000 Is Put in a Savings Account Paying Interest