If K2000 is invested at 5% compound annually what will be the investment value after 5years?
1 view
1 view
2
answers
Sort By
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.
0
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.