SOLUTION: 2.) Determine the future values if $5,000 is invested in each of the following situations: a.) 5 percent for ten years Begin with $100 - - - > 5 percent for 1 year - - >

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Question 236335: 2.) Determine the future values if $5,000 is invested in each of the following situations:


a.) 5 percent for ten years
Begin with $100 - - - > 5 percent for 1 year - - > 105
then with each $1 - - - > 105/100 = 1.05 after 1 year
Then for $5,000 it would be 5,000 * 1.05 after 1 year
and then 5,000 * 1.05 * 1.05 after 2 year
for 10 year investment
it would be 5,000 * (1.05)^10 = $8144.475 Ans
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2.) Determine the future values if $5,000 is invested in each of the following situations:
a.) 5 percent for ten years
Begin with $100 - - - > 5 percent for 1 year - - > 105
then with each $1 - - - > 105/100 = 1.05 after 1 year
Then for $5,000 it would be 5,000 * 1.05 after 1 year
and then 5,000 * 1.05 * 1.05 after 2 year
for 10 year investment
it would be 5,000 * (1.05)^10 = $8144.473 Ans