Future value: Carlos Lopes is looking to invest for the next three years. He is looking to invest $7,500 today in a bank term deposit that will earn interest at 5.75 percent annually. How much will he have at the end of three years? (Round to the nearest dollar.)
A) $8,870
B) $9,225
C) $8,681
D) $8,794

Question

Quizplus · Accepted Answer

The future value of an investment can be calculated using the formula:FV = PV * (1 + r)^nwhere:PV is the present value of the investmentr is the annual interest raten is the number of yearsIn this case, PV = $7,500, r = 5.75%, and n = 3. Plugging these values into the formula, we get:FV = $7,500 * (1 + 0.0575)^3FV = $7,500 * 1.185FV = $8,870Therefore, Carlos will have $8,870 at the end of three years.

Future Value: Carlos Lopes Is Looking to Invest for the Next