Question

use the data in table 3.1 to answer the following question(s):future value of $1 7% year 5 factor 1.403present value of $1 7% year 5 factor 0.713future value of a $1 ordinary annuity 7% year 5 factor 5.751present value of a $1 ordinary annuity 7% year 5 factor 4.100table 3.1refer to table 3.1 above. how much will you have if you deposit $1,000 today in an account paying 7% and you leave it on deposit for 5 years?○ $1,403○ $713○ $5,751○ $4,100

Explanation:

Step1: Identify relevant factor

We use the future value of $1 factor for 7% Year 5, which is 1.403.

Step2: Calculate future value

Multiply the deposit amount by the factor.
$\text{Future Value} = 1000 \times 1.403$

Answer:

A. $1,403