Future value: Carlos Lopes is looking to invest for the next three years. He is looking to invest $7,500 today in a bank CD 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.)

Question

Quizplus · Accepted Answer

The future value is calculated using the formula FV = PV * (1 + r)^n, where PV = $7,500, r = 0.0575, and n = 3. This results in FV = $7,500 * (1.0575)^3 = $8,870.

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