Posted by **tisha** on Wednesday, August 22, 2012 at 1:09am.

Find the future value of $10,000 invested now after five years if the annual interest rate is 8 percent.

a. What would be the future value if the interest rate is a simple interest rate?

b. What would be the future value if the interest rate is a compound interest rate?

- Finance -
**Henry**, Friday, August 24, 2012 at 12:15pm
a. P = Po + Po*r*t.

P = 10000 + 10000*0.08*5 = $14,000.

b. Compounded annually?

P = Po(1+r)^n.

P = 10,000(1.08)^5 = $14,693.28.

## Answer This Question

## Related Questions

- anonymous - 1.) an account invested in a month market fund grew from $67,081.20 ...
- Personal Finance - NEED HELP IMMEDIATELY, HAVE UNTIL 10P.M. CENTRAL TO HAVE ...
- efe - find the formula for calculating compound interest. If Mr. John Chrystal ...
- Finance - Find the future value one year from now of a $7,000 investment at a 3 ...
- Fins nance business - 1. Find the future value of current $1,000 5 year from ...
- Finance - Calculating Interest Rate. Find the interest rate implied by the ...
- math - Computing future value calculate the future value of a retirement account...
- financal problems - Computing future value. Calculate the future value of a ...
- personal finances - computing future value. calucale the future value of a ...
- programming - Having troube with java, i am not a regular programmer, if anybody...

More Related Questions