If a $10,000 investment earns a 4 % annual return, what should its value be after one year?

Name: If a $10,000 investment earns a 4 % annual return, what should its value be after one year?
Brand: Quizplus
Rating: 4.8 (48 reviews)

Question

Quizplus · Accepted Answer

To find the value of the investment after one year, we need to add the return to the initial investment.

Return = 4% of $10,000 = 0.04 x $10,000 = $400 
Value after one year = $10,000 + $400 = $10,400

Therefore, the correct answer is E, $10,400.

If a $10,000 Investment Earns a 4 % Annual Return