Topic:

Look for the FV of a lump sum or compounding or compound interest

Question 1) $8,000 invested for 7 years at 8 percent compounded annually.

Problem Example for Students: $5,000 invested for 10 years at 10 percent compounded annually.

FVn = PV (1 + i)n

FV10 = $5000(1 + 0.10)10

FV10 = $5000 (2.594)

FV10 = $12,970

(Show your work)