Compound Interest = [tex]P(1+\frac{r}{100} )^{n}[/tex]
where P - Principal
r - rate of interest
n - number of years
So, for 5 years, at 6% rate of interest, for the principal 12,000, the compount interest will be
[tex]CI = 12000(1+\frac{6}{100} )^{5}[/tex]
[tex]= 12000(\frac{106}{100} )^{5}[/tex]
[tex]= 12000(1.06)^{5}[/tex]
[tex]= 12000(2) approximately[/tex]
= 24000
Amount = Principal + C.I.
= 12000 + 24000
= 36000
Hence, after 5 years, the amount will be $36,000 approximately.
