The future value of $12,000 invested today at 6% interest compounded annually for 4 years is
A)$23,259.
B)$15,150.
C)$12,190.
D)$9,505.

Question

Quizplus · Accepted Answer

The future value of an investment is calculated using the formula FV = PV(1 + r)^n, where FV is the future value, PV is the present value, r is the annual interest rate, and n is the number of years. Plugging in the given values: FV = $12,000(1 + 0.06)^4 = $15,150.

The Future Value of $12,000 Invested Today at 6% Interest