The future value two years from today of $1000 received today is: A)$1000(1 + 2r). B)$1000(1 - 2r). C)$1000(1 + r)². D)$1000.

Question

Quizplus · Accepted Answer

The future value formula is FV = PV(1+r)^t, where PV is the present value, r is the annual interest rate, and t is the number of years. Substituting the given values, we get FV = 1000(1+r)^2. Therefore, the correct answer is C, which simplifies to 1000(1+r)^2.

The Future Value Two Years from Today of $1000 Received