FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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**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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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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