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:
$\begin{array}{|l|l|l|l|l|}
\hline& {5 \%} &{6 \%} &{7 \%} &{8 \%} \
\hline 1 & 1& 1 & 1& 1 \
\hline 2 & 2.05 & 2.06 & 2.07 & 2.08 \
\hline 3 & 3.153 & 3.184 & 3.215 & 3.246 \
\hline 4 & 4.31 & 4.375 & 4.44 & 4.506 \
\hline 5 & 5.526 & 5.637 & 5.751 & 5.867 \
\hline 6 & 6.802 & 6.975 & 7.153 & 7.336 \
\hline 7 & 3.142 & 8.394 & 3.654 & 8.923 \
\hline
\end{array}$

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:
$\begin{array}{|l|l|l|l|l|} 
\hline& {5 \%} &{6 \%} &{7 \%} &{8 \%} \
\hline 1 & 1& 1 & 1& 1 \
\hline 2 & 2.05 & 2.06 & 2.07 & 2.08 \
\hline 3 & 3.153 & 3.184 & 3.215 & 3.246 \
\hline 4 & 4.31 & 4.375 & 4.44 & 4.506 \
\hline 5 & 5.526 & 5.637 & 5.751 & 5.867 \
\hline 6 & 6.802 & 6.975 & 7.153 & 7.336 \
\hline 7 & 3.142 & 8.394 & 3.654 & 8.923 \
\hline
\end{array}$

Quizplus · Accepted Answer

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

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