Question

calculating future values assume you deposit $10,000 today in an account that pays 6 percent interest. how much will you have in five years?

Answer 1

ok

Step-by-step explanation:

To calculate the future value of an investment with compound interest, we can use the following formula:FV = PV x (1 + r)^nWhere:

FV = future value

PV = present value

r = interest rate (as a decimal)

n = number of compounding periodsIn this case, we have:

PV = $10,000

r = 6% = 0.06

n = 5 (since we want to know the value in 5 years)So, substituting these values into the formula, we get:FV = $10,000 x (1 + 0.06)^5

FV = $10,000 x 1.3382

FV = $13,382

Therefore, you will have $13,382 in 5 years if you deposit $10,000 today in an account that pays 6 percent interest with annual compounding.