The future value of $200 received today and deposited at 8 percent compounded semiannually forthree years is ________.
A) $252
B) $380
C) $158
D) $253

Question

The future value of $200 received today and deposited at 8 percent compounded semiannually forthree years is  ________.
A) $252
B) $380
C) $158
D) $253

Quizplus · Accepted Answer

The future value is calculated using the formula FV = PV * (1 + r/n)^(nt), where PV is the present value ($200), r is the annual interest rate (0.08), n is the number of compounding periods per year (2 for semiannual), and t is the number of years (3). Plugging in the values, FV = 200 * (1 + 0.08/2)^(2*3) = 200 * (1.04)^6 ≈ $253.

The Future Value of $200 Received Today and Deposited at 8