ind the balance in the account after the given period. $4000 principal earning 6% compounded annually, after 5 yr (1 point) Responses $6,726.28 $6,726.28 $5,352.90 $5,352.90 $5,395.40 $5,395.40 $7,716.74
To find the balance in the account after 5 years with a principal of $4000 earning 6% compounded annually, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the balance in the account after the given period
P = the principal (initial amount) in the account
r = the annual interest rate (in decimal form)
n = the number of times interest is compounded per year
t = the number of years
Plugging in the given values:
P = $4000
r = 0.06 (because 6% as a decimal is 0.06)
n = 1 (compounded annually)
t = 5 years
A = 4000(1 + 0.06/1)^(1*5)
A = 4000(1.06)^5
A ≈ $5,720.0582
Rounded to the nearest cent, the balance in the account after 5 years is $5,720.06.
Therefore, the correct response is $5,720.06.
are you sure?
Apologies for the mistake in my previous response.
To find the correct balance in the account after 5 years with a principal of $4000 earning 6% compounded annually, we can use the same formula:
A = P(1 + r/n)^(nt)
Plugging in the given values:
P = $4000
r = 0.06 (because 6% as a decimal is 0.06)
n = 1 (compounded annually)
t = 5 years
A = 4000(1 + 0.06/1)^(1*5)
A = 4000(1.06)^5
A ≈ $5,974.08
Rounded to the nearest cent, the correct balance in the account after 5 years is $5,974.08.
Therefore, the correct response is $5,974.08.