The future value of a $7,000 investment at the end of 4 years with an interest rate of 6% compounded annually is:
A)$8,680.00
B)$8,837.50
C)$5,544.70
D)$8,867.60

Question

Quizplus · Accepted Answer

Use the formula FV = PV x (1 + r)^n, where PV is the present value, r is the interest rate, and n is the number of periods. Substituting the given values, we get FV = 7,000 x (1 + 0.06)^4 = $8,837.50. Therefore, the best choice is B.

The Future Value of a $7,000 Investment at the End