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JeanaShupp

Answer: The accumulated amount after 5 years = $ 5352.90

The accumulated amount after 20 years = $ 12828.54

Step-by-step explanation:

Formula to find the accumulated amount after investing P amount at the rate of r ( in decimal) compounded annually for t years:

[tex]A=P(1+r)^t[/tex]

As per given , we have

P =  $4,000

r= 6% = 0.06

Put thsese values in formula : [tex]A=4000(1+0.06)^t=4000(1.06)^t[/tex]

The accumulated amount after 5 years = [tex]A(5)=4000(1.06)^5[/tex]

[tex]=4000(1.3382255776)=5352.9023104\\\\\approx5352.90[/tex]

Hence,  the accumulated amount after 5 years = $ 5352.90

The accumulated amount after 20 years = [tex]A(20)=4000(1.06)^{20}[/tex]

[tex]=4000(3.20713547221)=12828.5418888\\\\\approx12828.54[/tex]

Hence,  the accumulated amount after 20 years = $ 12828.54

fichoh

Using the compound interest formula, the amount in the bank at the end of 5 years and 20 years would be $5325.90 and $12828.54 respectively

Using the compound interest formula :

  • [tex] A = P(1 + r)^{t} [/tex]
  • P = principal
  • r = Rate
  • t = time

After 5 years :

[tex] A = 4000(1 + 0.06)^{5} [/tex]

Amount after 5 years = $5325.90

After 20 years :

[tex] A = 4000(1 + 0.06)^{20}[/tex]

Amount after 5 years = $12828.54

Hence, the amount accumulated after 20 years will be $12828.54

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