Scenario: Trinity deposits $8,000 in a bank at an interest rate of 8 percent per year compounded annually.
-Refer to the scenario above.What will be the future value of the deposit after 1 year?

Question

Quizplus · Accepted Answer

To calculate the future value of the deposit after 1 year, we use the formula:
Future Value = P(1 + r/n)^(nt)
Where P is the principal (initial deposit), r is the annual interest rate (as a decimal), n is the number of times interest is compounded per year, and t is the time period (in years).
Plugging in the given values, we get:
Future Value = $8,000(1 + 0.08/1)^(1*1)
Future Value = $8,640
Therefore, the answer is C, $8,640.

Scenario: Trinity Deposits $8,000 in a Bank at an Interest