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6 February, 18:44

f the present value of an investment is $5,000, what will be its future value in three years if you apply a compound interest of 5 percent to it?

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  1. 6 February, 21:30
    0
    6381.4078125 or $6381.41

    Step-by-step explanation:

    Pn - future value of P0

    P0 - original amount invested

    r - rate of interest

    n - number of compounding periods (months, years, etc.)

    Pn = P0 (1+r) n

    = $5000 (1+0.05) 5

    = 6381.4078125 or $6381.41
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