You inherited $25,000 today and placed it in an account that earns an 8% annual rate of return.What will be the value of the account after 25 years?
A)$50,000
B)$110,897
C)$121,307
D)$171,212

Question

Quizplus · Accepted Answer

The future value of an investment can be calculated using the formula FV = PV * (1 + r)^n, where PV is the present value, r is the annual rate of return, and n is the number of years. Plugging in the values: FV = $25,000 * (1 + 0.08)^25 = $171,212.

You Inherited $25,000 Today and Placed It in an Account