$394,772.11
Step-by-step explanation:
This requires using compound interest as follows:
Principal = $5,000
Time = 25 years
Interest rate per annum = 8%
1st year: principal = 5000
Interest capitalized (5000*0.08) = 400
Amount (5000 + 400) = $5400
2nd year: principal = 5400 + 5000 = 10,400
Interest capitalized (10,400*0.08) = 832
Amount (10,400 + 832) = $11,232
3rd year: principal = 11,232+5000 = $16,232
Interest capitalized (16,232*0.08) = 1,298.56
Amount (16,232+1,298.56) = $17,530.56
4th year: principal = 17,530.56+5000 = $22,530.56
Interest capitalized (22,530.56*0.08) = 1,802.45
Amount (22,530.56+1,802.45) = $24,333.01
5th year: principal = 24,333.01+5000 = $29,333.01
Interest capitalized (29,333.01 * 0.08) = 2,346.64
Amount (29,333.01 + 2,346.64) = $31,679.65
6th year: principal = 31,679.65 + 5000 = $36,679.65
Interest capitalized (36,679.65 * 0.08) = 2,934.37
Amount (36,679.65 + 2,934.37) = $39,614.02
7th year: principal = 39,614.02 + 5000 = $44,614.02
Interest capitalized (44,614.02 * 0.08) = 3,569.12
Amount (44,614.02 + 3,569.12) = $48,183.14
8th year: principal = 48,183.14 + 5000 = $53,183.14
Interest capitalized (53,183.14 * 0.08) = 4,254.65
Amount (53,183.14 + 4,254.65) = $57,437.79
9th year: principal = 57,437.79 + 5000 = $62,437.79
Interest capitalized (62,437.79 * 0.08) = 4,995.02
Amount (62,437.79 + 4,995.02) = $67,432.81
10th year: principal = 67,432.81 + 5000 = $72,432.81
Interest capitalized (72,432.81 * 0.08) = 5,794.63
Amount (72,432.81 + 5,794.63) = $78,227.44
11th year: principal = 78,227.44 + 5000 = $83,227.44
Interest capitalized (83,227.44 * 0.08) = 6,658.20
Amount (83,227.44 + 6,658.20) = $89,885.64
12th year: principal = 89,885.64 + 5000 = $94,885.64
Interest capitalized (94,885.64 * 0.08) = 7,590.85
Amount (94,885.64 + 7,590.85) = $102,476.49
13th year: principal = 102,476.49 + 5000 = $107,476.49
Interest capitalized (107,476.49 * 0.08) = 8,598.12
Amount (107,476.49 + 8,598.12) = $116,074.61
14th year: principal = 116,074.61 + 5000 = $121,074.61
Interest capitalized (121,074.61 * 0.08) = 9,685.97
Amount (121,074.61 + 9,685.97) = $130,760.58
15th year: principal = 130,760.58 + 5000 = $135,760.58
Interest capitalized (135,760.58 * 0.08) = 10,860.85
Amount (135,760.58 + 10,860.85) = $146,621.43
16th year: principal = 146,621.43 + 5000 = $151,621.43
Interest capitalized (151,621.43 * 0.08) = 12,129.71
Amount (151,621.43 + 12,129.71) = $163,751.14
17th year: principal = 163,751.14 + 5000 = $168,751.14
Interest capitalized (168,751.14 * 0.08) = 13,500.09
Amount (168,751.14 + 13,500.09) = $182,251.23
18th year: principal = 182,251.23 + 5000 = $187,251.23
Interest capitalized (187,251.23 * 0.08) = 14,980.10
Amount (187,251.23 + 14,980.10) = $202,231.33
19th year: principal = 202,231.33 + 5000 = $207,231.33
Interest capitalized (207,231.33 * 0.08) = 16,578.51
Amount (207,231.33 + 16,578.51) = $223,809.84
20th year: principal = 223,809.84 + 5000 = $228,809.84
Interest capitalized (228,809.84 * 0.08) = 18,304.79
Amount (228,809.84 + 18,304.79) = $247,114.63
21st year: principal = 247,114.63 + 5000 = $252,114.63
Interest capitalized (252,114.63 * 0.08) = 20,169.17
Amount (252,114.63 + 20,169.17) = $272,283.8
22nd year: principal = 272,283.8 + 5000 = $277,283.8
Interest capitalized (277,283.8 * 0.08) = 22,182.70
Amount (277,283.8 + 22,182.70) = $299,466.5
23rd year: principal = 299,466.5 + 5000 = $304,466.5
Interest capitalized (304,466.5 * 0.08) = 24,357.32
Amount (304,466.5 + 24,357.32) = $328,823.82
24th year: principal = 328,823.82 + 5000 = $333,823.82
Interest capitalized (333,823.82 * 0.08) = 26,705.91
Amount (333,823.82 + 26,705.91) = $360,529.73
25th year: principal = 360,529.73 + 5000 = $365,529.73
Interest capitalized (365,529.73 * 0.08) = 29,242.38
Amount (365,529.73 + 29,242.38) = $394,772.11
