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You Deposited $2,000 in a Bank Account Paying 6% on January

Question 21

Multiple Choice

You deposited $2,000 in a bank account paying 6% on January 1,2004,and then you made $2,000 deposits on January 1 in 2005 and 2006.Which of the following expressions will calculate your bank balance just after the last payment was deposited?


A) FV = $2,000[1.06]-1 + $2,000[1.06]-2 + $2,000[1.06]-3
B) FV = $2,000[1.06]1 + $2,000[1.06]2 + $2,000[1.06]3
C) FV = $2,000[1.06]0 + $2,000[1.06]1 + $2,000[1.06]2
D) FV = $2,000[1.06]-0 + $2,000[1.06]-1 + $2,000[1.06]-2 + $1,000[1.06]-3

Correct Answer:

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