Question

If you deposit $5,000 4 years from today, how much can you withdraw 10 years from today if interest is 6 percent per year compounded annually?

Answer 1

the future value is $7,093

Step-by-step explanation:

The computation of the future value is shown below:

As we know that

Future value = Present value × (1 + rate of interest)^number of years

= $5,000 × (1 + 0.06)^6

= $5,000 × 1.06^6

= $7,093

Hence, the future value is $7,093