What amount of cash would result at the end of one year, if $14,000 Invested today and the rate of return is 12%? (PV of $1 and PVA of $1 (Use appropriete factorts) from the tables provided. Round your answer to the nearest doller) Multiple Choice $15,680 $14,000 $15,540 $12.320
What amount of cash would result at the end of one year, if $14,000 Invested today and the rate of return is 12%? (PV of $1 and PVA of $1 (Use appropriete factorts) from the tables provided. Round your answer to the nearest doller) Multiple Choice $15,680 $14,000 $15,540 $12.320
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![**Investment Growth Calculation**
**Question:**
What amount of cash would result at the end of one year, if $14,000 is invested today and the rate of return is 12%? Use appropriate factors from the tables provided. Round your answer to the nearest dollar.
**Multiple Choice Options:**
- $15,680
- $14,000
- $15,540
- $12,320
To calculate the future value of the investment, use the formula:
\[ \text{Future Value} = \text{Present Value} \times (1 + \text{Rate of Return}) \]
Substitute the given values:
\[ \text{Future Value} = 14,000 \times (1 + 0.12) \]
\[ \text{Future Value} = 14,000 \times 1.12 \]
\[ \text{Future Value} = 15,680 \]
Thus, the correct answer is **$15,680**.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1e1a3f49-76a1-47d2-be7c-586afe137c42%2Fb50eb3ca-a21c-4329-bd8a-8c36f5acd413%2Fb2jlyf4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Investment Growth Calculation**
**Question:**
What amount of cash would result at the end of one year, if $14,000 is invested today and the rate of return is 12%? Use appropriate factors from the tables provided. Round your answer to the nearest dollar.
**Multiple Choice Options:**
- $15,680
- $14,000
- $15,540
- $12,320
To calculate the future value of the investment, use the formula:
\[ \text{Future Value} = \text{Present Value} \times (1 + \text{Rate of Return}) \]
Substitute the given values:
\[ \text{Future Value} = 14,000 \times (1 + 0.12) \]
\[ \text{Future Value} = 14,000 \times 1.12 \]
\[ \text{Future Value} = 15,680 \]
Thus, the correct answer is **$15,680**.
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