Items 48 through 51 apply to the appropriate use of interest tables. Given below are the future value factors for 1 at 8% for one to five periods. Each of the items 48 to 51 is based on 8% interest compounded annually.

-What amount will be in a bank account three years from now if $6,000 is invested each year for four years with the first investment to be made today?
A) ($6,000 × 1.260) + ($6,000 × 1.166) + ($6,000 × 1.080) + $6,000
B) $6,000 × 1.360 × 4
C) ($6,000 × 1.080) + ($6,000 × 1.166) + ($6,000 × 1.260) + ($6,000 × 1.360)
D) $6,000 × 1.080 × 4

Question

Items 48 through 51 apply to the appropriate use of interest tables. Given below are the future value factors for 1 at 8% for one to five periods. Each of the items 48 to 51 is based on 8% interest compounded annually.
 
-What amount will be in a bank account three years from now if $6,000 is invested each year for four years with the first investment to be made today?
A) ($6,000 × 1.260) + ($6,000 × 1.166) + ($6,000 × 1.080) + $6,000 
B) $6,000 × 1.360 × 4 
C) ($6,000 × 1.080) + ($6,000 × 1.166) + ($6,000 × 1.260) + ($6,000 × 1.360) 
D) $6,000 × 1.080 × 4

Quizplus · Accepted Answer

($6,000 × 1.260) + ($6,000 × 1.166) + ($6,000 × 1.080) + $6,000.

Items 48 Through 51 Apply to the Appropriate Use of Interest