Question

5-1 FUTURE VALUE If you deposit $10,000 in a bank account that pays 10% interest annually, how much will be in your account after 5 years

Answer 1

FV= $16,105.1

Step-by-step explanation:

Giving the following information:

Present value (PV)= $10,000

Interest rate (i)= 10% = 0.10

Number of periods (n)= 5 years

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

FV= PV*(1+i)^n

FV= 10,000*(1.1^5)

FV= $16,105.1