5000 12% compounded quarterly compound interest table find earned after 5 years

Solution:

The formula for compound interest, including principal sum, is:

A = the future value of the investment including interest

P = the principal investment amount

r = the annual interest rate in decimal

n = the number of times that interest is compounded per unit t

t = the time the money is invested

From given,

p = 5000

t = 5 years

n = 4 ( since interest is compounded quarterly )

Substituting the values we get,

Thus amount earned after 5 years is $ 9030.5561