Ask Experts Questions for FREE Help !
Ask
    brownsug1's Avatar
    brownsug1 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Oct 16, 2008, 05:34 PM
    Savings account
    If 5,000 is put in a savings account paying interest of 4% compounded annually, what amount will be in the account at the end of 5 years?
    The answer I got was 6,000. I multiplied 5,000, 04, and 5.
    Am I correct?
    jjwoodhull's Avatar
    jjwoodhull Posts: 1,378, Reputation: 239
    Ultra Member
    		  
    #2

    Oct 16, 2008, 05:46 PM
    The first year the balance would be $5000 and the interest would be $200.
    The second year the balance would be $5200 and the interest would be $208.
    The third year the balance would be $5408 and the interest would be $216.32.
    The fourth year the balance would be $5624.32 and the interest would be $224.97.
    The fifth year the balance would be 5849.29 and the interest would be $233.97.
    So, at the end of 5 years, the balance would be $6083.26.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Savings Account [ 2 Answers ]

Hello, I was wondering if a hospital can check a saving account for the balance. My mother is trying to get the hospital to pay for her surgery and they have a program. The form she has to fill out ask the balance of her accounts. She has been saving a little here and there and over the last 10...

Wiring to US savings account [ 1 Answers ]

Hi guys, Hopefully very easy question :) I have a savings account in the US, but live and earn in the UK. I would like to transfer my earnings (after UK tax) to my US account simply by wiring the money from my UK account, and take advantage of the dollar-pound exchange rate (hoping that the...

Joint Savings account with son [ 3 Answers ]

My husband had a joint savings account with his step-son. My husband started this account more than 10 years ago and has money directly deposited into this account. My step-son has put no money into this account. My step-son has always been told this money was to be used for schooling, or if he...

Savings Account [ 2 Answers ]

Hello there! I'm 23 years old. Both my girlfriend and I have good credit and decent income for our age. We want to purchase a home in the near future. What would be the best way to save for a down payment? Are there savings accounts that offer interest? What would be the best way to go?

View more questions Search