If the interest rate is 15 percent, what is the future value of $10,000 two years from now?

Name: If the interest rate is 15 percent, what is the future value of $10,000 two years from now?
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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 per period, and n is the number of periods. Here, PV = $10,000, r = 15% or 0.15, and n = 2. Thus, FV = $10,000 * (1 + 0.15)^2 = $10,000 * 1.3225 = $13,225.

If the Interest Rate Is 15 Percent, What Is the Future