What is the future value of $1,000 a year for five years at a 6% rate of interest?
A) $4,212.36
B) $5,075.69
C) $5,637.09
D) $6,001.38
E) $6,801.91

Question

Quizplus · Accepted Answer

This problem involves calculating the future value of an annuity. We can use the formula FV = Pmt x [(1 + r)n - 1 / r], where Pmt is the payment amount, r is the interest rate, and n is the number of periods. Plugging in the given values, we get FV = 1,000 x [(1 + 0.06)^5 - 1 / 0.06] = $5,637.09. Therefore, the best choice is C.

What Is the Future Value of $1,000 a Year for Five