Question 1151153

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 (1  + r/n)^(nt)}}}

{{{A =5000 (1  + 0.10/1)^(1*10)}}}

{{{A =12968.71}}}....round it

{{{A =12969}}}

Answer: B. ${{{12969}}}