Multi-Year Future Value How much would be in your savings account in 10 years after depositing $50 today if the bank pays 7 percent interest per year?
A)$35.00
B)$98.36
C)$535.00
D)$690.82

Question

Quizplus · Accepted Answer

The future value of a single sum can be calculated using the formula FV = PV * (1 + r)^n, where PV is the present value ($50), r is the interest rate (0.07), and n is the number of years (10). Plugging in the values, FV = 50 * (1 + 0.07)^10 = 50 * 1.967151 = $98.36.

Multi-Year Future Value How Much Would Be in Your Savings