Question

If despositor puts $100 in a bank account that’s earns 4 percent interest compounded annually how much will be in the account after 5 years?

Answer 1

$A=P(1+\cfrac{r}{100})^{nt}$

P=$100

r=4%

n=1

t=5

$A=100(1+\cfrac{4}{100})^5$

$A=100(1.04)^5$

$A=121.66529024=121.67$

=$121.67