At an annual interest rate of 8% compounded annually, $5,300 will accumulate to a total of
$7,210.65 in 5 years. (^PV^of^$1, ^FV^of^$1, ^PVA^of^$1, and ^FVA^of^$1) (Use appropriate factor(s) from the tables provided.)

Question

Quizplus · Accepted Answer

To find the future value of $5,300 at an 8% annual interest rate compounded annually over 5 years, use the formula FV = PV * (1 + r)^n. Here, FV = $5,300 * (1 + 0.08)^5 = $5,300 * 1.46933 = $7,788.45, which is not equal to $7,210.65.

At an Annual Interest Rate of 8% Compounded Annually, $5,300