If Kelly deposits $10,000 into an account that pays 8 percent interest, compounded annually, and she makes no further deposits or withdrawals, how much will Kelly have in her account at the end of 5 years?

Question

Quizplus · Accepted Answer

The future value of an investment compounded annually is calculated using the formula: FV = P(1 + r)^n, where P is the principal amount ($10,000), r is the annual interest rate (0.08), and n is the number of years (5). Plugging in the values, FV = $10,000(1 + 0.08)^5 = $14,693.28, which rounds to $14,693.

If Kelly Deposits $10,000 into an Account That Pays 8