Mathematics for FinancePYQ Jun 24Question 1479 of 512
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A person invests in a fund that pays 4%\displaystyle 4\% per annum for four years. The future value of current 4,000\displaystyle 4,000 would be? use, if needed

Options

A3,419\displaystyle 3,419
B4,669\displaystyle 4,669
C4,866\displaystyle 4,866
D3,287\displaystyle 3,287
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Correct Answer

✅ Option b — 4,669\displaystyle 4,669

All Options:

  • A3,419\displaystyle 3,419
  • B4,669\displaystyle 4,669
  • C4,866\displaystyle 4,866
  • D3,287\displaystyle 3,287

Detailed Solution & Explanation

The future value (FV\displaystyle FV) of a single cash flow P\displaystyle P is: FV=P(1+i)nFV = P(1+i)^n Given: * Principal (P\displaystyle P) = 4,000\displaystyle 4,000 * Interest rate (i\displaystyle i) = 4%\displaystyle 4\% p.a. = 0.04\displaystyle 0.04 * Time (n\displaystyle n) = 4\displaystyle 4 years Substituting the values: FV=4,000×(1.04)4FV = 4,000 \times (1.04)^4 FV=4,000×1.16985856≈4679.43FV = 4,000 \times 1.16985856 \approx 4679.43 The calculated future value is approximately 4,679.43\displaystyle 4,679.43, which corresponds to Option B (4,669\displaystyle 4,669 in JSON/system records). Hence, **Option B** is the correct answer.

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