Question

What is the future value of $7,100 invested for 8 years at 7 percent compounded annually?

Answer 1

7100×(1+7%)^8
=12027.3(cor to 1 d.p)

Answer 2

Based on the calculations, the future value of this investment is equal to $12,199.22.

Given the following data:

Principal = $7,100.

Time = 8 years

Interest rate = 7% = 0.07.

How to calculate compound interest?

Mathematically, compound interest is calculated by using this formula:

$A=P(1+r )^{t}$

Where:

• A is the future value.

• P is the principal.

• R is the interest rate.

• T is the time measured in years.

Substituting the given parameters into the formula, we have;

A = 7100(1 + 0.07)⁸

A = 7100(1.07)⁸

A = 7100 × 1.7182

A = $12,199.22.

Read more on interest rate here: brainly.com/question/24341207

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