Question

Select the correct answer. you want to deposit $15,000 in a bank at an interest rate of 7 percent per year. what is the future value of this money after three years? a. $18,375.65 b. $19,661.94 c. $20,407.33

Answer 1

b

Explanation:

The correct answer is **b. $19,661.94**.

To calculate the future value of an investment, we can use the following formula:

```

Future value = Present value * (1 + Interest rate)^Number of years

```

In this case, the present value is $15,000, the interest rate is 7%, and the number of years is 3.

```

Future value = $15,000 * (1 + 0.07)^3 = $19,661.94

```

Therefore, the future value of the investment after three years is $19,661.94.