Jesse is making a $5,000 investment that will be compounded annually at 10% for the next 10 years what's the future value of the original investment
Question
Answer:
The future value of the original investment is $12,968.71Step-by-step explanation:The formula for compound interest, including principal sum is [tex]A=P(1+\frac{r}{n})^{nt}[/tex] , where:A is the future value of the investment/loan, including interest
P is the principal investment amount (the initial deposit or loan amount)
r is the annual interest rate (decimal)
n is the number of times that interest is compounded per unit t
t is the time the money is invested or borrowed for
Jesse is making a $5,000 investment that will be compounded annually at 10% for the next 10 years.We need to find the future value of the original investment∵ Jesse is making a $5,000 investment∴ P = 5000∵ The interest rate is 10%∴ r = 10% = 10 ÷ 100 = 0.1∵ The interest is compounded annually∴ n = 1∵The time of investment is 10 years∴ t = 10- Substitute these values in the formula above∵ [tex]A=5000(1+\frac{0.1}{1})^{(1)(10)}[/tex]∴ [tex]A=5000(1+0.1)^{10}[/tex]∴ [tex]A=5000(1.1)^{10}[/tex]∴ A = 12968.71∴ The future value is $12,968.71The future value of the original investment is $12,968.71Learn more:You can learn more about compounded interest in brainly.com/question/2514241#LearnwithBrainly
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