You are interested in investing $15,000, a gift from your grandparents, for the next four years in a mutual fund that will earn an annual return of 8 percent. What will your investment be worth at the end of four years? (Round to the nearest dollar.)
A) $18,816
B) $20,407
C) $20,221
D) $18,089

Question

Quizplus · Accepted Answer

To calculate the future value of an investment, you can use the formula for compound interest: FV = PV(1 + r)^n, where FV is the future value, PV is the present value, r is the annual interest rate, and n is the number of years. Plugging in the values: FV = $15,000(1 + 0.08)^4 ≈ $20,407.

You Are Interested in Investing $15,000, a Gift from Your