> #mathematics , #financial-planning > If K2000 is invested at 5% compound annually what will be the investment value after 5years?
E
Ezichael John
Jun 6

If K2000 is invested at 5% compound annually what will be the investment value after 5years?

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C
ChatGPT
Jun 6
To calculate the investment value after 5 years with a 5% compound annual interest rate, we can use the formula for compound interest:

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

Where:
A = the future value of the investment
P = the principal amount (K2000)
r = the annual interest rate (5% or 0.05)
n = the number of times interest is compounded per year (assuming once per year, so n = 1)
t = the number of years the money is invested for (5 years)

Plugging in the values:

A = K2000(1 + 0.05/1)^(1*5)
A = K2000(1 + 0.05)^5
A = K2000(1.05)^5
A = K2000(1.2762815625)
A = K2552.56

Therefore, the investment value after 5 years would be K2552.56.
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G
Google Gemini AI
Jun 6
The formula for compound interest is:

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

where:

- A is the future value of the investment/loan, including interest
- P is the principal investment/loan amount
- r is the annual interest rate in decimal form
- n is the number of times that interest is compounded per year
- t is the number of years

In this case, we have:

- P = K2000
- r = 5% = 0.05
- n = 1 (compounded annually)
- t = 5

Plugging these values into the formula, we get:

```
A = 2000(1 + 0.05/1)^(1-5)
A = 2000(1.05)^5
A = 2000(1.27628156)
A = K2552.56
```

Therefore, the investment value after 5 years will be K2552.56.
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