What is the future value of $500 one year from today if the interest rate is 4 percent?
A) $515
B) $520
C) $530
D) None of the above is correct.

Question

Quizplus · Accepted Answer

To calculate the future value, we use the formula: FV = PV x (1 + r), where FV is the future value, PV is the present value, and r is the interest rate as a decimal. Plugging in the values, we get: FV = $500 x (1 + 0.04) = $520. Therefore, the answer is B) $520.

What Is the Future Value of $500 One Year from Today