What Is the Formula You Should Use to Determine a Bank

question 81

Multiple Choice

What is the formula you should use to determine a bank account's future value in one year?

• A)Future value equals the present value plus the rate of interest.
• B)Future value equals the present value minus the rate of interest.
• C)Future value equals the present value multiplied by one plus the rate of interest in decimals.
• D)Future value equals the present value divided by one plus the rate of interest in decimals.

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Definitions:

Contract

An agreement between parties creating mutual obligations enforceable by law.

Financing

The act of providing funds for business activities, making purchases, or investing.

Revoke

To officially cancel or withdraw something, such as a law, right, or offer.

Offer

A proposal presented by one party to another as a basis for negotiations or a potential contract.