The future value of $200 that is left in account earning 6.5% interest for three years is best expressed by which of the following?
A) $200(1.065) × 3
B) $200(1.065)/3
C) $200(1.065)ⁿ
D) $200(1.065)³

Question

Quizplus · Accepted Answer

The future value of an amount left in an account earning compound interest can be found by using the formula FV = PV(1+r)^n, where PV is the present value, r is the interest rate, and n is the number of years. Plugging in the given values, we get FV = $200(1+0.065)^3, which simplifies to FV = $245.23. The only choice that matches this calculation is D.

The Future Value of $200 That Is Left in Account