The future value of an investment of $1,000 to be received in three years at a discount rate of 10 percent is $1,331.

Question

Quizplus · Accepted Answer

This can be calculated using the formula for Future Value (FV) of a single amount:

FV = PV x (1 + r)^n

Where:
PV = present value = $1,000
r = discount rate = 10% = 0.10
n = number of years = 3

Plugging in these values, we get:

FV = $1,000 x (1 + 0.10)^3 
FV = $1,331

Therefore, the statement is true.

The Future Value of an Investment of $1,000 to Be