Compute the Future Value in Year 10 of a $1,000

question 105

Multiple Choice

Compute the future value in year 10 of a $1,000 deposit in year 1, and another $1,500 deposit at the end of year 4 using an 8 percent interest rate.

• A) $3,120.73
• B) $4,379.31
• C) $4,500.00
• D) $5,397.31

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Definitions:

Mutual Savings Bank

A financial institution owned by its depositors, primarily engaging in saving accounts and residential mortgage lending.

Depositors

Individuals or entities who place their money in a bank for safekeeping and earn interest over time.

Gramm-Leach-Bliley Act

A U.S. federal law enacted in 1999 that allows financial institutions to offer a broader range of services, including banking, securities, and insurance.