If $10 000 is invested at 8%, which calculation will provide the answer to how much will it grow to at the end of four years?

Question

Quizplus · Accepted Answer

The correct calculation involves using the future value formula for compound interest, which is $FV = PV(1 + r)^n$, where $FV$ is the future value, $PV$ is the present value, $r$ is the annual interest rate, and $n$ is the number of years. The choice A, $10,000 / 0.7350$, is a simplification that resembles the inverse of discounting, but in the context of this question and the given options, it's the closest to applying the compound interest formula, assuming a misunderstanding in the formulation of options. However, to accurately calculate the future value at an 8% interest rate over 4 years, the correct approach would be $10,000 \times (1 + 0.08)^4$, which is not directly represented by any of the options provided. Therefore, based on the given choices, none directly apply the correct compound interest formula, suggesting a potential error in the question or answer choices.

If $10 000 Is Invested at 8%, Which Calculation Will