Consider a bond that has a present value of $1,500.If the annual rate of interest is 4 percent, the future value of the bond after a year is
A)$1,560.00.
B)$1,540.00.
C)$1,440.00.
D)$1,442.31.

Question

Quizplus · Accepted Answer

The future value of the bond after a year can be calculated using the formula for future value: FV = PV(1 + r), where PV is the present value ($1,500) and r is the annual interest rate (4% or 0.04). Thus, FV = $1,500 * (1 + 0.04) = $1,500 * 1.04 = $1,560.00.

Consider a Bond That Has a Present Value of $1,500