Options:A) Present value of a single amount
B) Future value of a single amount
C) Simple interest
D) Present value of an annuity
E) Future value of an annuity
Answer:B) Future value of a single amount.
Explanation: Future value of a single amount is an accounting concept used to describe how much a single lump sum of money deposited in a bank account would have grown up to after a given period of time. Future value of a single amount can be obtained by
multiplying the principal(P)*the interest rate(I) * time(t) The interest rate is expressed as a decimal.
The FV = P(1 + rt).
Future value of a single amount is usually used in calculating the total accrued amount of fixed deposits accounts,it is a single period investment.
