If the interest rate is 6.75%, what is the approximate future value of $10,000 in five years?
A)$10,600
B)$7,214
C)$13,862
D)$11,966

Question

Quizplus · Accepted Answer

We can use the formula for future value of a lump sum: FV = PV*(1+r)^n, where PV is the present value, r is the interest rate, and n is the number of periods. Plugging in the numbers, we get FV = $10,000*(1+0.0675)^5 = $13,862. Therefore, the answer is C.

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