If $10,000 is invested annually in an account with 7% interest compounded yearly, what will the balance of the account be after six years? Refer to the following Future Value table: Future value of annuity of $1:
$$\begin{array} { | l | l | l | l | l | }
\hline & { 5 \% } &{ 6 \% } & { 7 \% } & { 8 \% } \
\hline 1 & 1 & 1 & 1 & 1 \
\hline 2 & 2.05 & 2.06 & 2.07 & 2.08 \
\hline 3 & 3.153 & 3.184 & 3.215 & 3.246 \
\hline 4 & 4.31 & 4.375 & 4.44 & 4.506 \
\hline 5 & 5.526 & 5.637 & 5.751 & 5.867 \
\hline 6 & 6.802 & 6.975 & 7.153 & 7.336 \
\hline 7 & 3.142 & 8.394 & 8.654 & 8.923 \
\hline
\end{array}$$

Question

If $10,000 is invested annually in an account with 7% interest compounded yearly, what will the balance of the account be after six years? Refer to the following Future Value table: Future value of annuity of $1:
$$\begin{array} { | l | l | l | l | l | } 
\hline &  { 5 \% } &{ 6 \% } & { 7 \% } & { 8 \% } \
\hline 1 & 1 & 1 & 1 & 1 \
\hline 2 & 2.05 & 2.06 & 2.07 & 2.08 \
\hline 3 & 3.153 & 3.184 & 3.215 & 3.246 \
\hline 4 & 4.31 & 4.375 & 4.44 & 4.506 \
\hline 5 & 5.526 & 5.637 & 5.751 & 5.867 \
\hline 6 & 6.802 & 6.975 & 7.153 & 7.336 \
\hline 7 & 3.142 & 8.394 & 8.654 & 8.923 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The future value of an annuity of $1 at 7% interest compounded yearly for 6 years is 7.153. Therefore, the future value of $10,000 invested annually is $10,000 * 7.153 = $71,530.

If $10,000 Is Invested Annually in an Account with 7