Question

Select the correct answer.

What would be the value of $150 after eight years if you earn 12 percent interest per year?

future value = Px(1+1)

present value = otu

noise

OA $371,39

Answer 1

It would be $371.39

Explanation:

In order to find the value in the future, the following formula is used

`FV=PV(1+i)^(T)`

Where FV is the future value, PV, the present value ($150), i the interest (12%) and T, the number of years (8)

Therefore,
`FV=150(1+0.12)^(8)=371.39`