If you were to put $1,000 in the bank at 6% interest each year for the next 10 years, how much would you have as an ending balance in your account?
A) Present value of $1
B) Future value of $1
C) Present value of an annuity of $1
D) Future value of an annuity of $1

Question

Quizplus · Accepted Answer

This problem involves calculating the future value of an annuity (the $1,000 deposited each year) at a fixed interest rate of 6% for 10 years. Therefore, the best choice is D, which is the future value of an annuity of $1.

If You Were to Put $1,000 in the Bank at 6