One Year Future Value What is the future value of $700 deposited for one year earning 4% interest rate annually?
A) $28
B) $700
C) $728
D) $1428

Question

Quizplus · Accepted Answer

The future value can be calculated using the formula:
FV = PV x (1 + r)
where FV is the future value, PV is the present value or deposit, and r is the annual interest rate as a decimal. 
Plugging in the values:
FV = 700 x (1 + 0.04)
FV = 700 x 1.04
FV = $728
Therefore, the correct answer is C, $728.

One Year Future Value What Is the Future Value of $700