Question

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

Answer 1

Explanation:

A . $ 371 .39

Answer 2

Every year $150 gains 12%, so every year you multiplythe value $150 times 1.12. So, after eight years the value will be: $150 * 1.12 * 1.12 * 1.12 * 1.12 * 1.12 * 1.12 * 1.12 * 1.12 = $150 * (1.12)^8 = $ 371.39. Answer: $ 371. 39