You have been asked to compute the amount of a fund that will be available at the end of three years as a result of a single sum of $1,000 that is deposited. What is the interest concept that best describes this application?
A) Present value of a single amount.
B) Future value of annuity.
C) Future value of a single amount.
D) Present value of an annuity.

Question

Quizplus · Accepted Answer

The question asks for the amount that will be available at the end of three years from a single sum of $1,000 that is deposited, which describes the future value of a single amount.

You Have Been Asked to Compute the Amount of a Fund