The future value of $100 received today and deposited in an account for four years paying semiannual interest of 6 percent is:
A) $450
B) $126
C) $889
D) $134
E) $124

Question

Quizplus · Accepted Answer

FV = PV × 11ea7fdb_fc23_c7f7_a768_9735b01ca422_TB2902_00 FV = 100 × (1.03 11ea7fdb_fc23_c7f8_a768_1121d4250243_TB2902_00 = $126.68
Using a financial calculator:
N = 8, I/Y = 3, PV = -100, PMT = 0, cpt FV = $126.68

The Future Value of $100 Received Today and Deposited in an Account