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Answer

$70,123

Step-by-step explanation:

Data:

Present Value (PV) : 52,400

Interest rate (r) : 6%

Years (n): 5

Formula:

a) \(FV=P(\frac{(1+r)^{n}-1 }{r})\)

b) \(P=\frac{r(PV)}{1-(1-r)^{-n} }\)

Replacing the values on the formula (b) we have that

\(P=\frac{0.06(52400)}{1-(1-0.06)^{-5} }\) = 12439.57

Now that we know the value of P we can replace it on (a)

\(FV=12439.57(\frac{(1+.06)^{5}-1 }{.06})\) = 70,123

The total return on the investment of $52,400 with the rate of 6% compounded annually for 5 years is $70,123.

What is compound interest?

Compound interest is the amount charged on the principal amount and the accumulated interest with a fixed rate of interest for a time period.

The formula for the final amount with the compound interest formula can be given as,

\(A=P\times\left(1+\dfrac{r}{n\times100}\right)^{nt}\\\)

Here, A is the final amount (principal plus interest amount) on the principal amount P of with the rate r of in the time period of t.

The invested amount is $52,400 with the rate of 6% compounded annually.

The time period is 5 years. The total return on this investment is,

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Hence, the total return on the investment of $52,400 with the rate of 6% compounded annually for 5 years is $70,123.

Learn more about the compound interest here;

https://brainly.com/question/24274034

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