What's the future value of $1,950 after 5 years if the appropriate interest rate is 6%,compounded monthly?
A) $3,051.10
B) $2,630.26
C) $3,208.91
D) $2,498.74
E) $2,130.51

Question

Quizplus · Accepted Answer

The future value is calculated using the formula FV = P(1 + r/n)^(nt), where P is the principal amount ($1,950), r is the annual interest rate (0.06), n is the number of times interest is compounded per year (12), and t is the number of years (5). Plugging in these values gives FV = 1950(1 + 0.06/12)^(12*5) = $2,630.26.

What's the Future Value of $1,950 After 5 Years If