Assignment
If $10,000 is invested annually in an account with 7% interest compounded yearly, what will the balance of the account be after six years? Refer to the following Future Value table:
Future value of annuity of$1:
|
5%
|
6%
|
7%
|
8%
|
|
1
|
1
|
1
|
1
|
1
|
|
2
|
2.05
|
2.06
|
2.07
|
2.08
|
|
3
|
3.153
|
3.184
|
3.215
|
3.246
|
|
4
|
4.31
|
4.375
|
4.44
|
4.506
|
|
5
|
5.526
|
5.637
|
5.751
|
5.867
|
|
6
|
6.802
|
6.975
|
7.153
|
7.336
|
|
7
|
8.142
|
8.394
|
8.654
|
8.923
|
A. $71,530
B. $18,020
C. $79,050
D. $83,290