What is the future value of $600 deposited for 4 years earning an 11% interest rate annually?
A) $792.90
B) $803.61
C) $899.23
D) $910.84

Question

Quizplus · Accepted Answer

Using the formula for future value of a single sum: 
FV = PV x (1 + r)^n, where 
PV = Present value = $600 
r = Interest rate = 11% or 0.11 (since it's given annually) 
n = Number of years = 4

FV = $600 x (1 + 0.11)^4 
FV = $910.84

Therefore, the future value of $600 deposited for 4 years at an 11% interest rate annually is $910.84, which corresponds to answer choice D.

What Is the Future Value of $600 Deposited for 4