Question

What is the future value​ (FV) of

$ 60 comma 000$60,000

in

sixsix

​years, assuming the interest rate is

66​%

per​ year?

A.

$ 76 comma 600$76,600

B.

$ 72 comma 344$72,344

C.

$ 85 comma 111$85,111

D.

$ 39 comma 000

Answer 1

We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.

Hence

A=$60,000*(1.06)^6

=$60,000*1.418519112

which is equal to =$85,111(Approx).