You decide to deposit $2,000 at a local bank for two years at a 8% rate of interest compounded annually. What is the future value of your investment? (Do not round any intermediary calculations, and round your final answer to the nearest dollar.) Use the formula approach.
A) $2,000
B) $2,160
C) $2,343
D) $2,333

Question

Quizplus · Accepted Answer

The future value of the investment can be calculated using the formula:FV = PV * (1 + r)^nwhere:PV is the present value of the investment ($2,000)r is the annual interest rate (8%)n is the number of years (2)Plugging these values into the formula, we get:FV = 2000 * (1 + 0.08)^2FV = 2000 * 1.1664FV = $2,332.80Rounding to the nearest dollar, the future value of the investment is $2,333.

You Decide to Deposit $2,000 at a Local Bank for Two