Question

Suppose your​ friend's parents invest 15,000 in an account paying 7% compounded annually. What will the balance be after 5 ​years?(round to the nearest cent as needed)

Answer 1

FV= $21,038.28

Explanation:

Giving the following information:

Initial investment (PV)= $15,000

Interest rate (i)= 7% compounded annually

Number of periods (n)= 5

To calculate the future value (FV), we need to use the following formula:

FV= PV*(1 + i)^n

FV= 15,000*(1.07^5)

FV= $21,038.28