Question

If you were to invest $5000 today how much would it be worth in 10 years if you put it an account that earned 6% interest and was compounded annually? Future value

Answer 1

The formula for this problem is:

future value = present value x (1 + interest rate)^n

in which n is the number of years.

So:

FV = 5000(1,06)^10

FV= 5000 x 1,790

FV = $8,950