A man invested K8000 for 5 years at 10%p.a.compound interest. Calculate the investment value at the end of 5 years?

To calculate the investment value at the end of 5 years with compound interest, we can use the formula:

A = P(1 + r/n)^(nt)

Where:
A = the future value of the investment
P = the principal amount (K8000)
r = the annual interest rate (10% or 0.10)
n = the number of times the interest is compounded per year (assuming it is compounded annually, n = 1)
t = the number of years the money is invested for (5 years)

Plugging in the values:

A = K8000(1 + 0.10/1)^(1*5)
A = K8000(1 + 0.10)^5
A = K8000(1.10)^5
A = K8000(1.61051)
A = K12884.08

Therefore, the investment value at the end of 5 years would be K12884.08.

Formula for Compound Interest:

P(1 + r/n)^(nt)

where:

- P = Principal (K8000)
- r = Annual interest rate (10%)
- n = Number of times interest is compounded per year (not specified in the question)
- t = Number of years (5)

Solution:

Since the compounding frequency is not specified, let's assume it is compounded annually, i.e., n = 1.

Substituting the values into the formula:

P(1 + r/n)^(nt) = K8000(1 + 0.10/1)^(1 - 5)
= K8000(1.10)^5
= K8000(1.61051)
= K12,884.08

Therefore, the investment value at the end of 5 years is K12,884.08.