Which of the following formulas represents the future value of $500 invested at 8% compounded quarterly for five years? A)500(1 + .08)⁵ B)500(1 + .08)²⁰ C)500(1 + .02)⁵ D)500(1 + .02)²⁰

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Quizplus · Accepted Answer

The formula for future value with compound interest is FV = P(1 + r/n)^(nt). Here, P = 500, r = 0.08, n = 4 (quarterly), and t = 5. So, FV = 500(1 + 0.08/4)^(4*5) = 500(1 + 0.02)^20.

Which of the Following Formulas Represents the Future Value of $500