The Future Value of $676 Deposited at 5

question 63

Multiple Choice

The future value of $676 deposited at 5.85 percent compounded annually for five years is closest to

• A)$845.
• B)$962.
• C)$907.
• D)$898.

---

Definitions:

Total Return

The overall financial gain or loss on an investment over a specific period of time, including interest, capital gains, dividends, and distributions realized over the period.

Yield-To-Maturity

The total return anticipated on a bond if held until it matures, including all payments and interest.

Tax-Deductible

Expenses that can be subtracted from gross income to reduce the amount of income that is subject to taxation.

Bond Principle

The face value of a bond or the amount that the issuer agrees to pay the bondholder upon the maturity of the bond.