V5. Suppose you invest $5,000 at 9% interest, compounded annually, for 10 years. Determine the future value of your investment,

Question

3 years ago

13

using the compound interest formula.

1 answer:

Elanso [62] · Answer 1 · 2022-03-18T07:23:49+03:00

Answer: $11836.8

Step-by-step explanation:

Given. That :

Amount invested = $5000

Interest rate = 9% = 0.09

Period = 10 years, compounded annually

Using the compound interest formula :

A = p(1 + r/n)^nt

A = final amount

P = principal or invested amount

r = rate of interest

n = number of times interest Is applied per period

t = period

A = 5000(1 + 0.09/1)^(1*10)

A = 5000(1.09)^10

A = 5000 * 2.36736367459211723401

A = 11836.81837296058617005

= $11836.8