Which of the following is the correct way to compute the future value of $1 put into an account that earns 5 percent interest for 16 years? A)$1(1 + .05)¹⁶ B)$1(1 + .0516)16 C)$1(1 + .0516) D)$1(1 + 16/.05)¹⁶

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 interest rate, and n is the number of periods. Here, $1 is the present value, 5% is the interest rate, and 16 is the number of years.

Which of the Following Is the Correct Way to Compute