If you put $1,000 in the bank today at an interest rate of 6% what is its value in two years?
A) $2,0001.06)
B) $1,000 + $1.06)2
C) $1,0001.06)2
D) None of the above are correct.

Question

Quizplus · Accepted Answer

The value of the investment in two years can be calculated by using the formula A=P(1+r)n where A is the value after n years, P is the principal (initial investment), r is the interest rate, and n is the number of years. Plugging in the given values, A = 1000(1+0.06)2 = $1,123.60. Therefore, the correct choice is C.

If You Put $1,000 in the Bank Today at an Interest