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Find the future value if $7000 is invested for 8 years at 11% compounded annually.

User Mirekphd
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1 Answer

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Final answer:

The future value of $7000 invested for 8 years at an annual interest rate of 11% compounded annually will be $15005.12.

Step-by-step explanation:

The future value of an investment is calculated using the formula FV = P(1 + r)^n, where P is the principal amount ($7000), r is the annual interest rate (11% or 0.11 when expressed as a decimal), and n is the number of years the money is invested (8 years). To find the future value of $7000 invested for 8 years at 11% compounded annually, apply the formula:

FV = 7000(1 + 0.11)^8

FV = 7000(1.11)^8

FV = 7000(2.14358881)

FV = $15005.12

Therefore, if $7000 is invested for 8 years at an annual interest rate of 11% compounded annually, the future value will be $15005.12.

User Vinothini
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