SOLUTION: Jessie is making a $5,000 investment that will be compounded annually at 10% for the next 10 years. What’s the future value of the original investment? A. $5,523 B. $12,9

Algebra ->  Finance -> SOLUTION: Jessie is making a $5,000 investment that will be compounded annually at 10% for the next 10 years. What’s the future value of the original investment? A. $5,523 B. $12,9      Log On


   

Question 1151153: Jessie is making a $5,000 investment that will be compounded annually at 10% for the next 10 years. What’s the future value of the original investment?
A.
$5,523
B.
$12,969
C.
$13,535
D.
$13,677
Answer by MathLover1(20850) About Me  (Show Source):
You can put this solution on YOUR website!

Jessie is making a $5000 investment that will be compounded annually at 10% for the next 10 years. What’s the future value of the original investment?
a $P=5000 benefit payment
r=10%=0.10 interest
n=1 compounded annually
t=10 years

The formula you need is:
A+=+P+%281++%2B+r%2Fn%29%5E%28nt%29
A+=5000+%281++%2B+0.10%2F1%29%5E%281%2A10%29
A+=12968.71....round it
A+=12969
Answer: B. $12969