Which one of the following is the correct formula for the future value of $500 invested today at 7 percent interest for 8 years? A)FV = $500/[(1 + 0.08) × 7] B)FV = $500/[(1 + 0.07) × 8] C)FV = $500/(0.07 × 8) D)FV = $500 (1 + 0.07)⁸ E)FV = $500 (1 + 0.08)⁷

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Quizplus · Accepted Answer

The future value formula for compound interest is FV = PV × (1 + r)^n, where PV is the present value, r is the interest rate, and n is the number of periods. Here, PV = $500, r = 0.07, and n = 8.

Which One of the Following Is the Correct Formula for the Future