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What is the future value of $875 deposited for one year earning an 8 percent interest rate annually?

User Riko
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Final answer:

The future value of $875 deposited for one year at an 8% interest rate is $945, calculated using the formula for the future value of an investment.

Step-by-step explanation:

The future value of an investment can be calculated using the formula FV = PV * (1 + r)^n, where PV is the present value, r is the annual interest rate, and n is the number of years the money is invested. For a $875 deposit at an 8 percent interest rate annually for one year, the future value would be calculated as follows:

FV = $875 * (1 + 0.08)^1

FV = $875 * 1.08

FV = $945

Thus, the future value of the $875 deposited for one year at an 8% interest rate is $945.

User Looki
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