If Phil has a $100,000 bond with a 7% interest rate,compounded annually,how much will he have in 8 years?
A) $163,452.83
B) $170,978.42
C) $149,867.49
D) $171,818.62

Question

Quizplus · Accepted Answer

The future value of the bond can be calculated using the formula for compound interest: FV = P(1 + r)^n, where P is the principal amount ($100,000), r is the annual interest rate (0.07), and n is the number of years (8). Plugging in these values, FV = 100,000(1 + 0.07)^8 = $171,818.62.

If Phil Has a $100,000 Bond with a 7% Interest