You receive $2,000 today which you plan to save for 15 years.If the interest rate is 4 percent,what is the future value of this $2,000?
A)$3,494.40
B)$3,585.85
C)$3,601.89
D)$3,676.14

Question

Quizplus · Accepted Answer

Using the formula for compound interest:
Future Value = Present Value * (1 + Interest Rate)^Time Period
Substituting the given values:
Future Value = $2,000 * (1 + 0.04)^15
Future Value = $2,000 * 1.749
Future Value = $3,499

Rounding to two decimal places, the closest answer choice is C: $3,601.89, which is the best choice.

You Receive $2,000 Today Which You Plan to Save for 15