The formula in finding the maturity value is the following:
A = P (1 + r) ^t
Where A = Maturity value
P =
principal amount
r =
Annual percentage rate
t = time
in years
Substituting the given amount to the formula:
A = $8,000 (1 + 6%) ^10
= $8,000 (1.7908)
= $14,326.40
Therefore, the amount of $8,000 after 10 years compounded
annually at 6% is $14,326.40
