Question

The amount a sum will grow to in a certain number of years when compounded at a specific rate is called a/an :

-Annuity

-Perpetuity

-Present Value

-Future Value

Answer 1

An annuity is a fixed sum of payment every year till a fixed period of time

A perpetuity is a fixed sum of payment each year forever

Present value is the value today of a future amount receivable after a fixed period of time

Future Value is the value of a sum of money in future after a fixed period of time which will result to the amount growing at a given rate of interest and which will compound annually

So, as per above discussion, Future Value is the correct answer and option D is the correct option