If Ming Lee invests $13,000 at a rate of 5% for 7 years, what will be the future value of his investment?

To determine the future value of Ming Lee's investment, we can apply the future value formula for compound interest. The formula is:

[ FV = P(1 + r)^n ]

Where:

• ( FV ) is the future value of the investment,

• ( P ) is the principal amount (the initial amount of money),

• ( r ) is the annual interest rate (expressed as a decimal),

• ( n ) is the number of years the money is invested for.

Given:

• ( P = 13,000 )

• ( r = 0.05 ) (which is 5% expressed as a decimal)

• ( n = 7 )

Substituting these values into the formula:

[ FV = 13,000(1 + 0.05)^7 ]

Calculating inside the parentheses first:

[ FV = 13,000(1.05)^7 ]

Next, we calculate ( (1.05)^7 ):

[ (1.05)^7 \approx 1.4071 ]

Now, we can finish the calculation:

[ FV = 13,000 \times 1.4071 ]

[ FV \approx