Answer:
$9,487.17
Explanation:
The computation of the amount realized at the end of 7 years is shown below;
It can be determined by two methods, first is this one
Future value = $1,000 × 1.10^6 + $1,000 × 1.10^5 + … + $1,000 × 1.10 + $1,000
= $1,000 × (1.10^7 - 1) ÷ 0.10
= $1,000 × 9.48717
= $9,487.17
The second one is shown in the attachment
In both methods, the answers are the same
