If $15,000 is invested annually in an account with 9% interest compounding yearly, what will the balance of the account be after five years? Refer to the following Future Value table: Future value of annuity of $1:
$$\begin{array} { | l | l | l | l | }
\hline & { 7 \% } &{ 8 \% } & { 9 \% } \
\hline 1 & 0.935 & 0.926 & 0.917 \
\hline 2 & 1.808 & 1.783 & 1.759 \
\hline 3 & 2.624 & 2.577 & 2.531 \
\hline 4 & 3.387 & 3.312 & 3.24 \
\hline 5 & 4.1 & 3.993 & 3.89 \
\hline 6 & 4.767 & 4.623 & 4.486 \
\hline 7 & 5.389 & 5.206 & 5.033 \
\hline
\end{array}$$

Question

If $15,000 is invested annually in an account with 9% interest compounding yearly, what will the balance of the account be after five years? Refer to the following Future Value table: Future value of annuity of $1:
$$\begin{array} { | l | l | l | l | } 
\hline & { 7 \% } &{ 8 \% } & { 9 \% } \
\hline 1 & 0.935 & 0.926 & 0.917 \
\hline 2 & 1.808 & 1.783 & 1.759 \
\hline 3 & 2.624 & 2.577 & 2.531 \
\hline 4 & 3.387 & 3.312 & 3.24 \
\hline 5 & 4.1 & 3.993 & 3.89 \
\hline 6 & 4.767 & 4.623 & 4.486 \
\hline 7 & 5.389 & 5.206 & 5.033 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The future value of an annuity formula is used: FV = Pmt × FVIFA. Here, Pmt = $15,000, and FVIFA for 9% and 5 years is 3.89. Thus, FV = $15,000 × 3.89 = $58,350.

If $15,000 Is Invested Annually in an Account with 9