$1,000 invested today at 6% interest would be worth ________ one year from now
A)$1,600
B)$1,060
C)$1,160
D)$1,006
E)none of the above

Question

Quizplus · Accepted Answer

The formula to calculate the future value of a present amount is:
FV = PV x (1 + r)
where FV is the future value, PV is the present value, and r is the interest rate.
Substituting the given values, we get:
FV = 1,000 x (1 + 0.06)
FV = 1,000 x 1.06
FV = 1,060
Therefore, $1,000 invested today at 6% interest would be worth $1,060 one year from now. The closest answer choice is B.

$1,000 Invested Today at 6% Interest Would Be Worth ________