The future value of C invested at r% for t periods is:
A) FV = C/(1 + r)t.
B) FV = (C)(1 + t)r.
C) FV = (C)(1 + r)t.
D) FV = [C][1/(1 + r)t].
E) FV = (C)(1 + r)(t).

Question

Quizplus · Accepted Answer

The formula for calculating the future value of an investment (FV) is FV = C(1 + r)^t, where C is the initial investment, r is the annual interest rate, and t is the number of years the investment is held. Choice C is the only option that matches this formula, so it is the correct answer.

The Future Value of C Invested at R% for T