At an annual interest rate of 7%,the future value of $5000 in five years is closest to:
A)$3565.
B)$6750.
C)$7015.
D)$7035.

Question

Quizplus · Accepted Answer

We can use the formula FV = PV x (1 + r)^n, where PV is the present value (in this case, $5000), r is the annual interest rate (7%), and n is the number of years (5). Plugging in these values, we get FV = 5000 x (1 + 0.07)^5 = $7014.83, which is closest to answer choice C, $7015.

At an Annual Interest Rate of 7%,the Future Value of $5000