What is the future value of $1,000 deposited for one year earning 5 percent interest rate annually?
A) $1,000
B) $1,005
C) $1,050
D) $2,050

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 a $1,000 deposit at a 5% interest rate for one year, the future value is $1,000 * (1 + 0.05)^1 = $1,050.

What Is the Future Value of $1,000 Deposited for One