How much would be in your savings account in 12 years if you deposited $1,500 today? Assume the bank pays 5 percent per year.
A) $2,387.12
B) $2,491.03
C) $2,693.78
D) $2,771.09

Question

Quizplus · Accepted Answer

To find the future value of a single sum, we use the formula FV = PV(1 + r)^n, where FV is the future value, PV is the present value ($1,500), r is the annual interest rate (5% or 0.05), and n is the number of years (12). Plugging in the values, we get FV = $1,500(1 + 0.05)^12 = $1,500(1.795856326022)^12 ≈ $2,693.78.

How Much Would Be in Your Savings Account in 12