Sue now has $280.How much would she have after 8 years if she leaves it invested at 8.5% with annual compounding?

Question

Quizplus · Accepted Answer

The future value of an investment can be calculated using the formula: FV = PV * (1 + r)^n, where PV is the present value ($280), r is the annual interest rate (0.085), and n is the number of years (8). Plugging in the values, FV = 280 * (1 + 0.085)^8 = 280 * 1.85093 = $518.26, which is closest to option A ($537.77) considering rounding differences.

Sue Now Has $280