what will be future value of 10000 at the compound rate of interest of 7% after 5 years
The formula for compound interest is A=P(1+r)^t wher A is the amount received after the time period, P is your initial amount, r is the interest rate, and t is the time. This is assuming that the interest in compounded on a yearly basis.
A=P(1+r)^t
A=10000(1+0.07)^5
A=10000(1.07)^5
A=10000(1.4025517307)
A=14025.52
With a payoff of approximately 1.4026 on the dollar after seven years you'd have made a $4 025.52 profit to then have a sum of $14 025.52
The formula for compound interest is A=P(1+r)^t wher A is the amount received after the time period, P is your initial amount, r is the interest rate, and t is the time. This is assuming that the interest in compounded on a yearly basis.
A=P(1+r)^t
A=10000(1+0.07)^5
A=10000(1.07)^5
A=10000(1.4025517307)
A=14025.52
With a payoff of approximately 1.4026 on the dollar after seven years you'd have made a $4 025.52 profit to then have a sum of $14 025.52
