If you plan to invest $10,000 and want to determine how much will be accumulated in six years if you earn interest at 7% per year,you would calculate this using the future value of an annuity.

Question

Quizplus · Accepted Answer

To calculate how much will be accumulated in six years if you earn interest at 7% per year on a single investment of $10,000, you would use the future value of a single sum formula, not the future value of an annuity formula. The future value of an annuity formula is used when dealing with a series of equal, periodic payments or investments.

If You Plan to Invest $10,000 and Want to Determine