In the formula A=P(1+r) t , p is the principle, r is the annual rate , A is the amount of years . An account waning 4% has a principal of $500000 . If no more deposits or withdrawals are made. ABOUT how much money will be in the account after 5 years

Question

In the formula A=P(1+r) t , p is the principle, r is the annual rate , A is the amount of years   . An account waning 4% has a principal of $500000 . If no more deposits or withdrawals are made. ABOUT how much money will be in the account after 5 years

Damon · Answer

I think you mean compound interest (1+r)^t where the ^ means "to the power" the first y year multiply by 1+r the second year you multiply that new amount by 1+r etc (1.04)^5 = 1.22 approximately so multiply $500000 by 1.22 By the way it is "principal" as in principal of a school. It is not "principle " as in principles of accounting. You did it right the second time.