Question

Future value = P × (1+ i)t

`"present value" = "P" / (1 + i)^"t"`

You want to deposit $12,000 in a bank at an interest rate of 8 percent per year. What is the future value of this money after five years?

A.
$15,315.38
B.
$17,631.94
C.
$16,830.62

Answer 1

$17,631.94

Explanation:

Answer 2

Option B.
`\$17,631.94`

Explanation:

we know that

The formula of future value is equal to

`A=P(1+r)^(t)`

where

A is the Future Value

P is the Present value

r is the rate of interest in decimal

t is Number of Time Periods

in this problem we have

`t=5\ years\\ P=\$12,000\\ r=0.08`

substitute in the formula above

`A=\$12,000(1+0.08)^(5)=\$17,631.94`