You own a classic automobile that is currently valued at $67,900. If the value increases by 8% annually, how much will the automobile be worth 15 years from now?
A) $199,801.33
B) $212,524.67
C) $214,740.01
D) $215,390.28
E) $218,887.79

Question

Quizplus · Accepted Answer

To find the future value of the automobile, you can use the formula for compound interest: $A = P(1 + r)^n$, where $A$ is the amount of money accumulated after n years, including interest, $P$ is the principal amount ($67,900), $r$ is the annual interest rate (8% or 0.08), and $n$ is the time the money is invested or borrowed for, in years (15). Plugging in the values: $A = 67900(1 + 0.08)^{15}$, which calculates to approximately $215,390.28.

You Own a Classic Automobile That Is Currently Valued at $67,900