9 If you deposit 10000 in a bank account that pays 10 intere

9, If you deposit $10,000 in a bank account that pays 10% interest annually, how much will be in your account after 5 years?

Solution

FUTURE VALUE = PRESENT VALUE (1 +RATE) ⁿ

FUTURE VALUE = 10000(1+0.10)⁵

FUTURE VALUE = 10000 (1.61051) = 16105.1

ANSWER : $16105.1