$200 is invested in an account paying 7.5% compounded annually. How much will the account be worth after 8 years? [Round to the nearest cent. Use the compound interest formula .]
A) $\approx$ $351.54
B) $\approx$ $353.38
C) $\approx$ $356.70
D) $\approx$ $361.98

Question

$200 is invested in an account paying 7.5% compounded annually. How much will the account be worth after 8 years? [Round to the nearest cent. Use the compound interest formula  .]
A) $\approx$ $351.54 
B) $\approx$ $353.38 
C) $\approx$ $356.70 
D) $\approx$ $361.98

Quizplus · Accepted Answer

Using the compound interest formula, we have:

FV = PV(1+r)^n
where PV = 200, r = 0.075, and n = 8

Plugging in the values, we get:

FV = 200(1+0.075)^8
FV ≈ 356.70

Therefore, the account will be worth approximately $356.70 after 8 years. The correct choice is C.

$200 Is Invested in an Account Paying 7 ≈\approx≈ $35154 B) ≈\approx≈

$200 Is Invested in an Account Paying 7 $\approx$ $35154
B) $\approx$