The Future Value of $5,000 Invested Today at 3% Interest

question 30

Multiple Choice

The future value of $5,000 invested today at 3% interest compounded annually for 5 years is

• A)$5,255.
• B)$5,520.
• C)$5,628.
• D)$5,796.

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Definitions:

Market Price

The current price at which a good or service can be bought or sold in a marketplace, determined by supply and demand forces.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, leading to market equilibrium.

Quantity Supplied

The total amount of a particular good or service that producers are willing to provide at a given price.

Shortage

A market condition where the demand for a product or service exceeds its supply, often leading to higher prices or queuing.