Mathematics for IGCSE & O level - Percentages (Section 2 - No. 2)
Selena invests $4000 and receives 5% interest a year which is added to the amount each year. How much is her investment worth in total after 6 years?
$5000
$5360.38
$5300
$5500
Explanation
The formula for compound interest: A = P(1 + r/100)^n, where A is the final amount, P is the principal, r is the interest rate, and n is the number of years. Therefore, A = $4000*(1+5/100)^6 = $5360.38.
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