If $10,000 Is Invested Annually in an Account with 7

question 115

Multiple Choice

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:
$\begin{array}{|l|l|l|l|l|} \hline& {5 \%} &{6 \%} &{7 \%} &{8 \%} \\\hline 1 & 1& 1 & 1& 1 \\\hline 2 & 2.05 & 2.06 & 2.07 & 2.08 \\\hline 3 & 3.153 & 3.184 & 3.215 & 3.246 \\\hline 4 & 4.31 & 4.375 & 4.44 & 4.506 \\\hline 5 & 5.526 & 5.637 & 5.751 & 5.867 \\\hline 6 & 6.802 & 6.975 & 7.153 & 7.336 \\\hline 7 & 3.142 & 8.394 & 3.654 & 8.923 \\\hline\end{array}$

• A) $79,050
• B) $71,530
• C) $18,020
• D) $83,290

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