Your accountant tells you that if you can continue to earn the current interest rate on your balance of $750 for the next three years,you will have $944.78 in your account.If your accountant is correct,then what is the current interest rate?
A)6 percent
B)7 percent
C)8 percent
D)10 percent

Question

Quizplus · Accepted Answer

The future value formula is FV = PV * (1 + r)^n. Plugging in the values: $944.78 = $750 * (1 + r)^3. Solving for r gives approximately 8 percent.

Your Accountant Tells You That If You Can Continue to Earn