A company invests $10,000 at 7% compounded annually. At the end of the second year, the company should have $11,400 in the fund.

Name: A company invests $10,000 at 7% compounded annually. At the end of the second year, the company should have $11,400 in the fund.
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Question

Quizplus · Accepted Answer

The correct calculation for compound interest over 2 years at 7% annually on a $10,000 investment would be $10,000 * (1 + 0.07)^2 = $10,000 * 1.1449 = $11,449, not $11,400.

A Company Invests $10,000 at 7% Compounded Annually