If $14,000 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:
$$\begin{array} { | l | r | r | r | }
\hline & { 7 \% } & 8 \% & 9 \% \
\hline 1 & 1.000 & 1.000 & 1.000 \
\hline 2 & 2.070 & 2.080 & 2.090 \
\hline 3 & 3.215 & 3.246 & 3.278 \
\hline 4 & 4.440 & 4.506 & 4.573 \
\hline 5 & 5.751 & 5.867 & 5.985 \
\hline 6 & 7.153 & 7.336 & 7.523 \
\hline 7 & 8.654 & 8.923 & 9.200 \
\hline
\end{array}$$

Question

If $14,000 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:
$$\begin{array} { | l | r | r | r | } 
\hline & { 7 \% } & 8 \% & 9 \% \
\hline 1 & 1.000 & 1.000 & 1.000 \
\hline 2 & 2.070 & 2.080 & 2.090 \
\hline 3 & 3.215 & 3.246 & 3.278 \
\hline 4 & 4.440 & 4.506 & 4.573 \
\hline 5 & 5.751 & 5.867 & 5.985 \
\hline 6 & 7.153 & 7.336 & 7.523 \
\hline 7 & 8.654 & 8.923 & 9.200 \
\hline
\end{array}$$

Quizplus · Accepted Answer

Using the table, the factor for an annuity of $1 at 9% for 5 years is 5.959. Therefore, the balance of the account after five years would be $14,000 x 5.959 = $83,126.

If $14,000 Is Invested Annually in an Account with 9