If $1,000 Is Invested in an Account with 4% Interest

question 66

Multiple Choice

If $1,000 is invested in an account with 4% interest compounding yearly, what will the balance of the account be after 4 years? Please refer to the following Future Value table:
$$\begin{array} {| r | r | r | r | r | } \hline\begin{array} { l } \text { Future } \\\text { Value of } \\\text { \$1 }\end{array} & & & & \\\hline & 4 \% & 5 \% & 6 \% & 7 \% \\\hline 1 & 1.040 & 1.050 & 1.060 & 1.070 \\\hline 2 & 1.082 & 1.103 & 1.124 & 1.145 \\\hline 3 & 1.125 & 1.158 & 1.191 & 1.225 \\\hline 4 & 1.170 & 1.216 & 1.262 & 1.311 \\\hline 5 & 1.217 & 1.276 & 1.338 & 1.403 \\\hline 6 & 1.265 & 1.340 & 1.419 & 1.501 \\\hline\end{array}$$

• A) $1,218
• B) $1,170
• C) $1,040
• D) $1,240

---

Definitions:

Flagellum

A flagellum is a whip-like appendage found on some cells, including bacteria and spermatozoa, that aids in locomotion.

Sperm Cell

is the male gamete or reproductive cell involved in fertilization of the female ovum.

Microvilli

Small, finger-like projections on the surface of some cells that increase the surface area for absorption or secretion.

Small Intestine

A part of the gastrointestinal tract between the stomach and the large intestine, where most of the digestion and absorption of food nutrients takes place.