Question

$8000 invested at an APR of 6% for 10 years.

Answer 1

The formula in finding the maturity value is the following:

A = P (1 + r) ^t

Where A = Maturity value

            P = principal amount

             r = Annual percentage rate

             t = time in years

Substituting the given amount to the formula:

A = $8,000 (1 + 6%) ^10

    = $8,000 (1.7908)

    = $14,326.40

Therefore, the amount of $8,000 after 10 years compounded annually at 6% is $14,326.40