If the interest rate is 4%,in which of the following cases is the future value the largest?
A)An initial value of $1,000 deposited for 5 years.
B)An initial value of $950 deposited for 6 years.
C)An initial value of $900 deposited for 7 years.
D)An initial value of $850 deposited for 8 years.

Question

Quizplus · Accepted Answer

The future value can be calculated using the formula FV = PV x (1 + r)^n where PV is the initial value or present value, r is the interest rate, and n is the number of years.

Using this formula: 
- Choice A yields a future value of $1,217.14 
- Choice B yields a future value of $1,209.50 
- Choice C yields a future value of $1,193.27 
- Choice D yields a future value of $1,174.42

Therefore, choice A has the largest future value.

If the Interest Rate Is 4%,in Which of the Following