Question

What is the future value of $10,000 deposited today in a bank account that pays 7.1% interest rate after 5 years?

Answer 1

Answer:

Future value = $14090

Explanation:

Below is the given values:

Present value of deposits = $10000

Interest rate = 7.1%

Time period = 5 years

Future value = Present value (F/P, r, n)

Future value = 10000 (F/P, 7.1%, 5)

Future value = 10000 x 1.409

Future value = $14090