Question

Suppose your friend's parents invest $15,000 in an account paying 7% compounded annually. What will the balance be after 6 years?

Answer 1

$22,510.96

Explanation:

Final investment value

$22,510.96

Total interest earned

$7,510.96

Initial balance

$15,000.00

Total monthly deposits

$0.00

Effective Annual Rate (APY)

7%