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 3 years?

Question

Quizplus · Accepted Answer

The future value of the deposit can be calculated using the formula for compound interest: FV = P(1 + r)^n, where P is the principal amount ($8,000), r is the annual interest rate (0.08), and n is the number of years (3). Plugging in the values, FV = 8000(1 + 0.08)^3 = 8000(1.259712) = $10,077.70.

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