The future value of $200 received today and deposited at 8 percent for three years is
A) $248.
B) $252.
C) $158.
D) $200.

Question

Quizplus · Accepted Answer

The future value can be calculated as: 
FV = PV x (1 + r)^n 
Where: 
PV = present value = $200 
r = interest rate per period = 8% = 0.08 
n = number of periods = 3

Plugging these values in the formula, we get: 
FV = $200 x (1 + 0.08)^3 
FV = $200 x 1.2597 
FV = $251.94

Rounding off to the nearest dollar, the future value of $200 after three years at 8% interest is $252 (Choice B).

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