As a future graduation present,you uncle has just placed $6,000 in a bank account that will earn an annual rate of return of 6%.How much will be in that account when you graduate in four years?
A)$7,731.55
B)$6,752.56
C)$6,247.70
D)$7,790.63
E)$7,574.86

Question

Quizplus · Accepted Answer

The future value of the investment can be calculated using the formula for compound interest: FV = P(1 + r)^n, where P is the principal amount ($6,000), r is the annual interest rate (0.06), and n is the number of years (4). Plugging in the values, FV = 6000(1 + 0.06)^4 = 6000(1.262477) = $7,574.86.

As a Future Graduation Present,you Uncle Has Just Placed $6,000