SOLUTION: $3,600.00 principal earning 5%, compounded annually, after 5 years. Can you help me figure this out?

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: $3,600.00 principal earning 5%, compounded annually, after 5 years. Can you help me figure this out?      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 613660: $3,600.00 principal earning 5%, compounded annually, after 5 years. Can you help me figure this out?
Found 2 solutions by ewatrrr, Theo:
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
 

Hi, 

In General A+=+P%281%2Br%2Fn%29%5E%28nt%29

A = Accumulated Amount

P= principal = 3600

r= annual rate = .05

n= periods per year = 1

t= years = 5

A+=+3600%281.06%29%5E5

Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
3600 principal earning 5% compounded annually would be equal to:
3600 * (1.05)^5 = 4594.613625 = 4594.62.