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3 years ago

Sue now has $125. How much would she have after 8 years if she leaves it invested at 8.5% with annual compounding?

Business

1 answer:

gregori [183]3 years ago

8 0

Answer:

future value = 240.076 = 240.08

so correct option is $240.08

Explanation:

given data

present value = $125

rate = 8.5 % = 0.085

time = 8 year

to find out

future value

solution

we get here future value that is express as

future value = present value × $(1+r)^{t}$ ...........................1

here r is rate and t is time period

put here value in equation 1

future value = present value × $(1+r)^{t}$

future value = $125 × $(1+0.085)^{8}$

future value = 240.076 = 240.08

so correct option is $240.08

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