An individual invests $10,000 at a rate of 5% per annum.What will be its value in 10 years' time?
A)$15,000
B)$15,853
C)$16,289
D)$18,000
E)$19,000

Question

Quizplus · Accepted Answer

The future value of an investment can be calculated using the formula for compound interest: FV = P(1 + r)^n, where P is the principal amount ($10,000), r is the annual interest rate (0.05), and n is the number of years (10). Plugging in the values, FV = 10000(1 + 0.05)^10 = 10000(1.62889) = $16,289.

An Individual Invests $10,000 at a Rate of 5% Per