Question

36) Five Years Future Value What is the future value of $600 deposited for five years earning 5% interest rate annually?

A) $766
B) $166
C) $1,366
D) $600

Answer 1

A) $766

Step-by-step explanation:

Hello! To calculate the future value of $600 deposited for five years with a 5% annual interest rate, we can use the formula:

• FV = PV x (1 + r)^n

where FV is the future value, PV is the present value, r is the interest rate, and n is the number of years.

Plugging in the values, we get:

• FV = $600 x (1 + 0.05)^5
• FV = $600 x 1.27628
• FV = $765.77

Therefore, the future value of $600 deposited for five years with a 5% annual interest rate is $765.77, which is closest to option A.

Answer 2

the answer is A) $766.00