Question

suppose your friends parents invest $10,000 in an account paying
7% compounded annually. what will the balance be after 5 years?

Answer 1

Answer:

$14025.52

Step-by-step explanation:

The Total amount after a compound interest can be calculated using the formula:

$T = P(1 + \frac{R}{100})^{n}$

where P is the amount of deposit, R is the rate of interest, n is the duration.

Hence by substituting the values, we get:

$T = 10 000(1 + \frac{7}{100})^{5}$

T = $14025.52 (nearest cent)