4. what is the future value of a $10,000 investment after 5 years with a 8%...

4. what is the future value of a $10,000 investment after 5 years with a 8% interest rate per year, compounded annually?

Solutions

Expert Solution

Given:

Principal (P) = $10,000

Interest (r) = 8% or 0.08

Time period (n) = 5 years

For Compounded annually:

Future value = P * (1 + r)^n

= $10,000 * (1 + 0.08)^5

= $14,693.28

FUTURE VALUE = $14,693.28

jeff jeffy answered 1 year ago

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