What Is the Future Value of a 5-Year Investment of $3000

question 63

Multiple Choice

What is the future value of a 5-year investment of $3000 at an APR of 7% compounded monthly?

• A)$4252.88
• B)$3034.21
• C)$4050.00
• D)$1252.88

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Definitions:

Consumes

The action of using up a good or service, typically resulting in a decrease in available quantity.

Consumption

The use of goods and services by households. It is an important component of GDP and a direct indicator of consumer spending behavior.

Income

Earnings received by a person or entity, typically through work, investments, or business ventures.

Interest Rate

The amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal.