Which of the following is closest to the future value of a $4,000 deposit earning 2 percent interest annually after 10 years?
A)$4,122
B)$4,876
C)$5,025
D)$4,805

Question

Quizplus · Accepted Answer

The future value of a deposit can be calculated using the formula FV = PV(1 + r)^n, where FV is the future value, PV is the present value ($4,000), r is the annual interest rate (2% or 0.02), and n is the number of years (10). Plugging in these values gives FV = $4,000(1 + 0.02)^10 ≈ $4,876.

Which of the Following Is Closest to the Future Value