A company has $46,000 today to invest in a fund that will earn 4% compounded annually.How much will the fund contain at the end of 6 years? (PV of $1,FV of $1,PVA of $1,and FVA of $1)$\bold{\text{(Use appropriate factor(s)from the tables provided.)}}$
A)$58,204
B)$47,840
C)$58,075
D)$57,040
E)$62,582

Question

Quizplus · Accepted Answer

The future value of a single sum can be calculated using the formula $FV = PV(1 + i)^n$, where $PV$ is the present value, $i$ is the interest rate per period, and $n$ is the number of periods. Here, $PV = $46,000$, $i = 4\%$, and $n = 6$ years. Thus, $FV = $46,000(1 + 0.04)^6 = $46,000(1.265319) = $58,204.07$, rounded to the nearest dollar gives $58,204.

A Company Has $46,000 Today to Invest in a Fund (Use appropriate factor(s)from the tables provided.)\bold{\text{(Use appropriate factor(s)from the tables provided.)}}(Use appropriate factor(s)from the tables provided.)

A Company Has $46,000 Today to Invest in a Fund $\bold{\text{(Use appropriate factor(s)from the tables provided.)}}$