Answer to Question #217728 in Financial Math for mehzabin

Question

If you deposit $10,000 in a bank account that pays 10% interest annually, how much will

be in your account after 5 years?

Answer 1

Future Value = Present Value ( 1 + Present Value)^n

Future Value = $\$10000( 1 + 0.10)^5$

Future Value =$\$10000 (1.1)^5$

Future Value = $\$10000(1.61051)$

Future Value = $\$16,105.1$