Calculate the future value of $5000 given that it will be held in the bank for 6 years and arn an annual interest rate of 7%.

To calculate the future value of an amount invested at an annual interest rate, we can use the formula for compound interest:

Future Value = Present Value × (1 + Interest Rate)^(Number of Periods)

In this case, the present value is $5000, the interest rate is 7% (0.07 in decimal form), and the number of periods is 6 years.

Applying these values to the formula, we get:

Future Value = $5000 × (1 + 0.07)^6

To calculate this, perform the following steps:

1. Add 1 to the interest rate: 1 + 0.07 = 1.07
2. Raise the result to the power of the number of periods: 1.07^6 ≈ 1.40255

Finally, multiply the result by the present value:

Future Value = $5000 × 1.40255 ≈ $7012.75

Therefore, the future value of $5000, with an interest rate of 7% per year over 6 years, is approximately $7012.75.