Question

Five years ago Gary invested $10,000 into an account that makes 6% compounded annually. The value in the account after x years is represented by the formula V = 10,000(1.06)x. Assuming that Gary has made no deposits or withdrawals, how much money is in the account now? A) $11,583.46 B) $12,624.77 C) $13,382.26 D) $14,185.19

Answer 1

$\sf V=10000(1.06)^x$

Where 'x' is years. It says 'five years ago', so input 5 for 'x':

$\sf V=10000(1.06)^5$

Simplify the exponent:

$\sf V\approx 10000(1.3382)$

Multiply:

$\sf V\approx \boxed{\sf\ 13382}$

So your answer is C.