If this value was compounded in 5 years, then we are going to use the compound interest formula to solve it. A = p(1+r%)∧n Where A⇒ Amount accumulated for the entire period. p⇒ Money invested r⇒ Interest rate per year n ⇒ period the money was invested.
∴A = 5000(1+4/100)∧5 The exponential function is A=5000×1.04∧5
A=5000×1.04∧5 =5000×1.216652902 =6,083.264512 The amount after 5 years = $6,083.26
