You will receive $15,000 in two years when you graduate. You plan to invest this at an annual interest rate of 6.5 percent. How much money will you have 8 years from now?
A) $24,824.94
B) $19,381.16
C) $21,887.13
D) $23,209.19
E) $20,414.73

Question

Quizplus · Accepted Answer

To find the future value, use the formula FV = PV * (1 + r)^n. Here, PV = $15,000, r = 6.5% or 0.065, and n = 6 years (since the money is invested for 6 years after receiving it in 2 years). FV = 15000 * (1 + 0.065)^6 = $21,887.13.

You Will Receive $15,000 in Two Years When You Graduate