You have been asked to compute the amount that will be available at the end of three years as a result of a single sum of $1,000 that is deposited. What is the interest concept that best describes this application?
A) Present value of a single amount.
B) Present value of an annuity.
C) Future value of a single amount.

Question

Quizplus · Accepted Answer

The interest concept that best describes computing the amount available at the end of a period due to a single sum deposited is the "Future value of a single amount." This concept is used to determine how much an initial deposit will grow over time with a certain interest rate.

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