The future value of $200 that is left in account earning 6.5% interest for three years is best expressed by which of the following?
A)$200(1.065) × 3
B)$200(1.065)/3
C)$200(1.065)n
D)$200(1.065)3

Question

Quizplus · Accepted Answer

The formula for calculating future value with compound interest is: FV = PV(1 + r)^n, where PV is the present value, r is the annual interest rate, and n is the number of years. Plugging in the values given, we get: FV = 200(1.065)^3. This simplifies to FV = 247.62, which is best expressed as D: $200(1.065)^3.

The Future Value of $200 That Is Left in Account