The amount at the end of one year and 20 years on investment of $5,000 at 5 percent interest compounded annually. Introduction: Compounding period can be referred to the time period for which the amount of interest would be added in the amount of principal that has been invested. The compounding period can be defined in annually, semi annually, quarterly or even monthly.

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Chapter 3, Problem 5PA

Summary Introduction

To determine:

The amount at the end of one year and 20 years on investment of $5,000 at 5 percent interest compounded annually.

Introduction:

Compounding period can be referred to the time period for which the amount of interest would be added in the amount of principal that has been invested. The compounding period can be defined in annually, semi annually, quarterly or even monthly.

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