4
QuizMultiple Choice

Present and Future Value — Quiz

Question 4 • Advanced Financial Algebra

A person invests $⁢1,500 at a 4% interest rate, compounded semiannually. Calculate the future value after 4 years. Formula: F⁢V=P⁢V⋅(1+(r)/(n))^n⋅t

Answer
A
1 dollars comma 560 point 0 0
B
1 dollars comma 754 point 7 9
C
1 dollars comma 560 point 6 0
D
1 dollars comma 757 point 4 9

Explanation

Use the compound-interest formula with P = $1,500, r = 0.04, n = 2, and t = 4. There are 2 × 4 = 8 compounding periods, so FV = 1,500(1 + 0.04/2)^8 = 1,500(1.02)^8 ≈ $1,757.49. The future value is choice D, $1,757.49.

AI-written and checked against the verified answer.

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