Question

Jesse is making a $5,000 investment that will be compounded annually at 10% for the next 10 years what's the future value of the original investment​

Answer 1

The future value of the original investment​ is $12,968.71

Step-by-step explanation:

The formula for compound interest, including principal sum is

$A=P(1+\frac{r}{n})^{nt}$ , where:

• A is the future value of the investment/loan, including interest
• P is the principal investment amount (the initial deposit or loan amount)
• r is the annual interest rate (decimal)
• n is the number of times that interest is compounded per unit t
• t is the time the money is invested or borrowed for

Jesse is making a $5,000 investment that will be compounded annually at 10% for the next 10 years.

We need to find the future value of the original investment

∵ Jesse is making a $5,000 investment

∴ P = 5000

∵ The interest rate is 10%

∴ r = 10% = 10 ÷ 100 = 0.1

∵ The interest is compounded annually

∴ n = 1

∵The time of investment is 10 years

∴ t = 10

- Substitute these values in the formula above

∵ $A=5000(1+\frac{0.1}{1})^{(1)(10)}$

∴ $A=5000(1+0.1)^{10}$

∴ $A=5000(1.1)^{10}$

∴ A = 12968.71

∴ The future value is $12,968.71

The future value of the original investment​ is $12,968.71

Learn more:

You can learn more about compounded interest in brainly.com/question/2514241

#LearnwithBrainly