What is the future value of $700 deposited for one year earning 4 percent interest rate annually?
A) $28
B) $700
C) $728
D) $1,428

Question

Quizplus · Accepted Answer

The future value of an investment is calculated using the formula FV = PV(1 + r)^n, where PV is the present value, r is the annual interest rate, and n is the number of years. For $700 at a 4% interest rate for one year, FV = $700(1 + 0.04)^1 = $700 * 1.04 = $728.

What Is the Future Value of $700 Deposited for One