Present Value of 1 Future Value of 1 Present Value of an Annuity of 1 Future Value of an Annuity of 1 A company has $46,000 today to invest in a fund that will earn 4% compounded annually. How much will the fund contain at the end of 6 years?
A)$58,204
B)$47,840
C)$58,075
D)$57,040
E)$62,582

Question

Present Value of 1  Future Value of 1  Present Value of an Annuity of 1  Future Value of an Annuity of 1  A company has $46,000 today to invest in a fund that will earn 4% compounded annually. How much will the fund contain at the end of 6 years?
A)$58,204 
B)$47,840 
C)$58,075 
D)$57,040 
E)$62,582

Quizplus · Accepted Answer

We can use the formula for Future Value of 1: FV = PV(1+r)^n
where PV = $46,000, r = 0.04, and n = 6.
FV = $46,000(1+0.04)^6 = $58,203.86, which rounds to $58,204. Therefore, the best choice is A.