Determine the future value if $5,000 is invested in each of the following situations: 7 percent for seven years $8,130 $8,031 $8

Question

4 years ago

10

,030 $7,030

1 answer:

Svetach [21] · Answer 1 · 2021-11-29T21:34:52+03:00

Answer:

The answer is $8,030

Explanation:

Present Value (PV) = $5,000

Future Value(FV) = ?

Interest rate(r) = 7 percent

Number of years (N) = 7 years

The formula for future value is:

FV = PV(1+ r)^n

= $5,000(1+0.07)^7

$5,000(1.07)^7

$5,000 x 1.605781476

=$8,028.91

Approximately $8,030

Alternatively, we can use a Financial calculator:

N= 7; I/Y= 7, PV= -5,000 CPT FV= $8,028.91

Approximately $8,030