What is the future value of $2000 deposited for one year earning 6% interest rate annually?
A) $120
B) $2000
C) $2120
D) $4120

Question

Quizplus · Accepted Answer

The future value of the deposit can be calculated using the formula:
FV = PV x (1 + r)^n
Where FV is the future value, PV is the present value, r is the interest rate, and n is the number of periods.

Substituting the given values, we get:
FV = 2000 x (1 + 0.06)^1
FV = 2000 x 1.06
FV = $2120

Therefore, the correct answer is (C) $2120, which is the future value of the deposit after one year at a 6% interest rate.

What Is the Future Value of $2000 Deposited for One