If this value was compounded in 5 years, then we are going to use the compound interest formula to solve it.
A = p(1+r%)∧n
Where A⇒ Amount accumulated for the entire period.
p⇒ Money invested
r⇒ Interest rate per year
n ⇒ period the money was invested.
∴A = 5000(1+4/100)∧5
The exponential function is A=5000×1.04∧5
A=5000×1.04∧5
=5000×1.216652902
=6,083.264512
The amount after 5 years = $6,083.26
