Final answer:
The future value of $5,000 at an annual 6% interest rate compounded annually for 10 years is approximately $8,954.24.
Step-by-step explanation:
The future value (FV) of an investment can be calculated using the compound interest formula FV = P(1 + r/n)nt, where P is the principal amount ($5,000), r is the annual interest rate (6% or 0.06), n is the number of times that interest is compounded per year (once for annually), and t is the time the money is invested or borrowed for (10 years).
Inserting these values into the formula gives us FV = $5,000(1 + 0.06/1)1*10 = $5,000(1.06)10. Calculating this, we get FV = $5,000 * 1.790847, which is approximately $8,954.24.
So, the future value of $5,000 at an annual 6% interest rate compounded annually for 10 years is approximately $8,954.24.