If an asset has a present value of $50 and appreciates at an interest rate of 4%,what is the asset's future value in 47 compounding periods?
A) Approximately $400
B) Approximately $316
C) Approximately $137
D) Approximately $1143

Question

Quizplus · Accepted Answer

To calculate the future value of an asset with present value (PV) of $50 at an interest rate (r) of 4% for 47 compounding periods, we use the formula:

FV = PV x (1 + r)^n

Where n is the number of compounding periods. Thus, FV = $50 x (1 + 0.04)^47 = $316. Therefore, the best choice is B, which is approximately $316.

If an Asset Has a Present Value of $50 and Appreciates