Which of the following is closest to the future value of an $800,000 deposit earning 2 percent interest annually after 20 years?
A)$1,120,262
B)$1,188,758
C)$1,201,204
D)$1,176,224

Question

Quizplus · Accepted Answer

The future value of an investment can be calculated using the formula FV = PV(1 + r)^n, where FV is the future value, PV is the present value, r is the annual interest rate, and n is the number of years. Plugging in the given values: FV = $800,000(1 + 0.02)^20 = $800,000(1.485947) ≈ $1,188,758.

Which of the Following Is Closest to the Future Value