Norton Company has a 12% compound annual interest rate. If the firm invests $60,000 today, how much will have accumulated by the end of eight years?
A) $117,600.
B) $148,560.
C) $298,080.
D) $738,000.
E) None of the other answers are correct.

Question

Quizplus · Accepted Answer

The future value of an investment can be calculated using the formula: FV = PV * (1 + r)^n, where PV is the present value ($60,000), r is the annual interest rate (0.12), and n is the number of years (8). Plugging in the values: FV = $60,000 * (1 + 0.12)^8 = $148,560.

Norton Company Has a 12% Compound Annual Interest Rate