CIMA BA1 · Chapter 13 · Question 2 of 10
$5,000 is invested at 6% a year compound interest. What will it be worth after 3 years (to the nearest cent)?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) $5,955.08
Explanation
Future value = P x (1 + r)^n = 5,000 x 1.06^3 = 5,000 x 1.191016 = $5,955.08.
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