Which of the Following Is the Correct Way to Compute

question 108

Multiple Choice

Which of the following is the correct way to compute the future value of $1 put into an account that earns 5 percent interest for 20 years?

• A) $1(1 + .05)²⁰
• B) $1(1 + .0520)20
• C) $1(1 + .0520)
• D) $1(1 + 20/.05)²⁰

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