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.

-If $4,000 is put in a savings account today, what amount will be available six years from now?
A) $4,000 × 1.080 × 6
B) $4,000 × 1.080 × 1.469
C) $4,000 × 1.166 × 3
D) $4,000 × 1.260 × 2

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.
 
-If $4,000 is put in a savings account today, what amount will be available six years from now?
A) $4,000 × 1.080 × 6 
B) $4,000 × 1.080 × 1.469 
C) $4,000 × 1.166 × 3 
D) $4,000 × 1.260 × 2

Quizplus · Accepted Answer

$4,000 × (1.080)⁶ or $4,000 × 1.469 × 1.080

Items 48 Through 51 Apply to the Appropriate Use of Interest