The future value of $200 that is left in account earning 6.5% interest for three years is best expressed by which of the following?
A)$200(1.065) x 3
B)$200(1.065)/3
C)$200(1.065)n
D)$200(1.065)3

Question

Quizplus · Accepted Answer

The future value of the account can be calculated using the formula FV = PV(1+r)^n, where PV is the present value, r is the interest rate per period, and n is the number of periods. In this case, the present value (PV) is $200, the interest rate (r) is 6.5%, and the number of periods (n) is 3. Plugging these values into the formula, we get:
FV = $200(1+0.065)^3
FV = $200(1.211)
FV = $242.20
Therefore, the best choice is answer D, $200(1.065)3.

The Future Value of $200 That Is Left in Account