An individual invests $5,000 at a rate of 5% per annum.What will be its value in 10 years' time?
A)$7,500
B)$7,927
C)$8,144
D)$9,000
E)$9,542

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 ($5,000), r is the annual interest rate (0.05), and n is the number of years (10). Plugging in the values: FV = 5000(1 + 0.05)^10 = 5000(1.62889) ≈ $8,144.

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