Answer:
FV= $11,156.94
Explanation:
Giving the following information:
Initial investment (PV)= $7,000
Number of periods (n)= 8 years
Interest rate (i)= 6% compounded annually
To calculate the future value (FV), we need to use the following formula:
FV= PV*(1 + i)^n
FV= 7,000*(1.06^8)
FV= $11,156.94