Use the data in table 3.1 to answer the following question(s):
Table 3.1
-Refer to Table 3.1 above. How much will you have if you deposit $1,000 today in an account paying 7% and you leave it on deposit for 5 years?
A) $1,403
B) $713
C) $5,751
D) $4,100

Question

Use the data in table 3.1 to answer the following question(s):
  Table 3.1
-Refer to Table 3.1 above. How much will you have if you deposit $1,000 today in an account paying 7% and you leave it on deposit for 5 years?
A) $1,403 
B) $713 
C) $5,751 
D) $4,100

Quizplus · Accepted Answer

The correct answer is found by calculating the future value of a single sum using the formula FV = PV(1 + r)^n, where PV is the present value ($1,000), r is the annual interest rate (7% or 0.07), and n is the number of periods (5 years). Plugging in the values, FV = $1,000(1 + 0.07)^5 = $1,403.

Use the Data in Table 3