If the interest rate is 5 percent, what is the future value of $5,000 three years from now?

Name: If the interest rate is 5 percent, what is the future value of $5,000 three years from now?
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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 annual interest rate, and n is the number of years. Plugging in the values, we get FV = $5,000(1 + 0.05)^3 = $5,788.

If the Interest Rate Is 5 Percent, What Is the Future