Use this information to answer the following question.
-A single deposit of $7,000 made at the beginning of period 1 and earning 12 percent interest compounded annually would grow to how much at the end of three years?
A)$7,840
B)$9,835
C)$8,778
D)$23,618

Question

Use this information to answer the following question.  
-A single deposit of $7,000 made at the beginning of period 1 and earning 12 percent interest compounded annually would grow to how much at the end of three years?
A)$7,840 
B)$9,835 
C)$8,778 
D)$23,618

Quizplus · Accepted Answer

The future value of a single deposit can be calculated using the formula FV = PV(1 + r)^n, where FV is the future value, PV is the present value (initial deposit), r is the annual interest rate (as a decimal), and n is the number of periods. Plugging in the values: FV = $7,000(1 + 0.12)^3 = $7,000(1.404928) ≈ $9,835.

Use This Information to Answer the Following Question