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) (Use appropriate factor(s) from the tables provided.) A) $62,582 B) $47,840 C) $57,040 D) $58,075 E) $58,204

Question

Quizplus · Accepted Answer

Using the compound interest formula, we have:

FV = PV(1 + r)^n
FV = $46,000(1 + 0.04)^6
FV = $58,204.03

Therefore, the fund will contain $58,204 at the end of 6 years. The closest answer choice is E, which is the correct answer.

A Company Has $46,000 Today to Invest in a Fund