What is the future value of $200 deposited today at eight percent interest compounded annually for three years?
A)$252
B)$250
C)$248
D)$249

Question

Quizplus · Accepted Answer

The future value of an investment is calculated using the formula 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 given values, we get FV = $200(1 + 0.08)^3 = $200(1.259712) ≈ $252.

What Is the Future Value of $200 Deposited Today at Eight