What is the future value of $2,500 deposited for one year earning a 14 percent interest rate annually?
A) $2,550
B) $2,850
C) $2,950
D) $3,150

Question

Quizplus · Accepted Answer

The future value of an investment is calculated using the formula FV = PV(1 + r)^n, where PV is the present value, r is the annual interest rate, and n is the number of years. Here, FV = $2,500(1 + 0.14)^1 = $2,500 * 1.14 = $2,850.

What Is the Future Value of $2,500 Deposited for One