Carol Chin received $5,400 as an annual profit-sharing bonus from her employer. Her accountant recommended an investment that would give her a return of 9% compounded annually. Compute the value of Carol's investment after 7 years. (Use Tables 16-1A&B or a calculator.)​

Compounded Annually

Interest on an investment that is calculated once per year, adding to the principal amount for future interest calculations.

Profit-Sharing

A company policy of distributing a portion of net profits among its employees as a form of incentive and reward.

Annual Profit

The financial gain or earnings of a business or individual for one full year after all expenses have been subtracted from total revenues.