Answer:
FV= $240.08
Step-by-step explanation:
Giving the following information:
Sue now has $125.
Number of periods= 8 years
Interest rate= 8.5% with annual compounding
To calculate the future value of the investment, we need to use the following formula:
FV= PV*(1+i)^n
FV= 125*(1.085)^8
FV= $240.08