If the interest rate is 15 percent, what is the future value of $10,000 two years from now?
A)$13,225
B)$225
C)$13,000
D)$7,576

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 per period, and n is the number of periods. Here, PV = $10,000, r = 15% or 0.15, and n = 2 years. Plugging these values into the formula gives FV = $10,000(1 + 0.15)^2 = $10,000(1.3225) = $13,225.

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