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future value = P × (1+ i)t

`"present value" = "P" / (1 + i)^"t"`

You want to deposit $12,000 in a bank at an interest rate of 8 percent per year. What is the future value of this money after five years?

A.
$15,315.38
B.
$17,631.94
C.
$16,830.62

Respuesta :

calculista

Answer:

Option B. [tex]\$17,631.94[/tex]  

Step-by-step explanation:

we know that    

The formula of future value is equal to  

[tex]A=P(1+r)^{t}[/tex]  

where  

A is the Future Value  

P is the Present value  

r is the rate of interest  in decimal

t is Number of Time Periods  

in this problem we have  

[tex]t=5\ years\\ P=\$12,000\\ r=0.08[/tex]  

substitute in the formula above  

[tex]A=\$12,000(1+0.08)^{5}=\$17,631.94[/tex]  

mattlawvideo12

Answer:

$17,631.94

Step-by-step explanation:

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