Mary wants to have $150 after six years by depositing $100 today and earning six percent interest compounded annually for the next six years.Can Mary attain her financial goal of having $150 lump sum six years later?
A)Yes,the future value is more than $150.
B)Yes,the present value is more than $150.
C)No,the present value is less than $150.
D)No,the future value is less than $150.

Question

Quizplus · Accepted Answer

The future value of $100 compounded annually at 6% for six years is calculated as $100 * (1 + 0.06)^6, which is approximately $141.85. This is less than $150, so Mary will not reach her goal.

Mary Wants to Have $150 After Six Years by Depositing