SOLUTION: If $5000 is invested at an interest rate of 4% each year, what is the value of the investment in 5 years? Write an exponential function and solve.

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Question 766492: If $5000 is invested at an interest rate of 4% each year, what is the value of the investment in 5 years? Write an exponential function and solve.
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
If $5000 is invested at an interest rate of 4% each year, what is the value of the investment in 5 years? Write an exponential function and solve.
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A(t) = P(1+(r/n))^(nt)
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A(5) = 5000(1+(0.04/1))^(1*5)
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A(5) = 5000(1.04)^5 = $6083.26
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Cheers,
Stan H.
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