Assuming you invest $1000 at an annual interest rate of 5%, compounded annually, how much will your investment have grown after 5 years?

Question

Assuming you invest $1000 at an annual interest rate of 5%, compounded annually, how much will your investment have grown after 5 years?
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Solution 1

To calculate the future value of an investment with annual compounding interest, you can use the formula:

FV = P * (1 + r/n)^(nt)

where:

  • FV is the future value of the investment
  • P is the principal amount (the initial amount of money)
  • r is the annual interest rate (in decimal form, so 5% woul Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
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