Consider the following timeline: If the current market rate of interest is 10%,then the future value at time 3 on this timeline is closest to:
A) $666
B) $500
C) $605
D) $650

Name: Consider the following timeline: If the current market rate of interest is 10%,then the future value at time 3 on this timeline is closest to: A) $666 B) $500 C) $605 D) $650
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Question

Consider the following timeline:  If the current market rate of interest is 10%,then the future value at time 3 on this timeline is closest to:
A) $666 
B) $500 
C) $605 
D) $650

Quizplus · Accepted Answer

A) FV = PV(1 + r)ⁿ = 500(1.10)³ = 665.50 which is approximately $666

Consider the Following Timeline: If the Current Market Rate