Calculate compound-interest-5000-at-6pct-for-5-years

Calculate simple interest, compound interest, loan payments and more — step by step.

Problem

Answer

Interest: $-1,812.88, Total: $-6,812.88

To calculate compound interest on $-5,000.00 at -6.0% for -5.0 years (compounded annually), follow the step-by-step solution below.

Step 1 — Write the formula

A = P × (1 + r/n)^n×t

Step 2 — Identify the values

P = $-5,000.00 (principal), r = -6.0% = -0.06 (annual rate), n = 1 (compounds per year), t = -5.0 (years)

Step 3 — Substitute and calculate

A = -5,000.00 × (1 + -0.061)^{1 × -5.0}

= -5,000.00 × (0.940000)^-5

= -5,000.00 × 1.362576

= $-6,812.88

Step 4 — Find the interest earned

Interest = A − P = -6,812.88 − -5,000.00 = $-1,812.88

Interest: $-1,812.88 | Total: $-6,812.88

How to calculate compound-interest-5000-at-6pct-for-5-years

Follow the step-by-step solution above to see how compound-interest-5000-at-6pct-for-5-years is solved.

This is a Finance — financial calculation

Frequently asked questions

What is the answer to compound-interest-5000-at-6pct-for-5-years?
The answer is Interest: $-1,812.88, Total: $-6,812.88.

What method is used?
Financial calculations use formulas for interest, present/future value, and amortization to determine costs and returns over time.

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