If $40,000 is put in a savings account paying interest of 4% compounded annually, what amount will be in the account at the end of five years?

Question

Quizplus · Accepted Answer

The future value of the investment can be calculated using the formula for compound interest: $ FV = P(1 + r)^n $, where $ P = 40,000 $, $ r = 0.04 $, and $ n = 5 $. Plugging in these values, $ FV = 40,000(1 + 0.04)^5 = 40,000(1.2166529) \approx 48,666 $.

If $40,000 Is Put in a Savings Account Paying Interest