A savings account pays 5% annual interest. Calculate the amount in the savings account if you invest $10,000 for 7 years $13,734 $13,050 $14,071 $15,252
A savings account pays 5% annual interest. Calculate the amount in the savings account if you invest $10,000 for 7 years $13,734 $13,050 $14,071 $15,252
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 1PROB
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A savings account pays 5% annual interest. Calculate the amount in the savings account if you invest $10,000 for 7 years
$13,734
$13,050
$14,071
$15,252
Expert Solution
Step 1
FV = PV (1 + r)n
where,
FV = Future Value
PV = Present Value,
r = annual rate of interest
n = number of years
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