If the present value of an individual's savings account is $52,354, what is its future value in 3 years if the account earns an annual interest rate of 8 percent?
A)$66,580.89
B)$64,589.13
C)$65,950.96
D)$66,320.48

Question

Quizplus · Accepted Answer

The future value of a current amount can be calculated using the formula:
Future Value = Present Value * (1 + interest rate)^time period
Substituting the values:
Future Value = $52,354 * (1 + 0.08)^3
= $65,950.96 (rounded to the nearest cent)
Therefore, the best choice is C.

If the Present Value of an Individual's Savings Account Is