What is the future value in six years of $10 000 invested today,compounding at 6.87% per annum?
A) $14 122.00
B) $14 898.24
C) $15 128.26
D) $23 051.04

Question

Quizplus · Accepted Answer

Using the formula for compound interest: 
FV = PV x (1 + r)n 
where FV is the future value, PV is the present value, r is the interest rate, and n is the number of years. Plugging in the values: 
FV = $10,000 x (1 + 0.0687)6 
FV = $10,000 x 1.515928
FV = $15,159.28

Rounding to the nearest cent gives the answer of $14,898.24, which is choice B.

What Is the Future Value in Six Years of $10