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Suppose that $100 is invested for five years at an interest rate of 8% per year, compounded annually. How much will be in the account at the end of five years? A. P = $100 (P/A,8%,5) = $100 (3.993) = $399.30 B. F = $100 (P/F,8%,5) = $100 (0.6806) = $68.06 C. F = $100 (F/A,8%,5) = $100 (5.867) = $586.70 D. F = $100 (F/P,8%,5) = $100 (1.469) = $146.90

Suppose that $100 is invested for five years at an interest rate of 8% per year, compounded annually. How much will be in the account at the end of five years? A. P = $100 (P/A,8%,5) = $100 (3.993) = $399.30 B. F = $100 (P/F,8%,5) = $100 (0.6806) = $68.06 C. F = $100 (F/A,8%,5) = $100 (5.867) = $586.70 D. F = $100 (F/P,8%,5) = $100 (1.469) = $146.90

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose that $100 is invested for five years at an interest rate of 8% per year, compounded annually. How much will be in the account at the end of five years?

 

A. P = $100 (P/A,8%,5) = $100 (3.993) = $399.30

 

B. F = $100 (P/F,8%,5) = $100 (0.6806) = $68.06

 

C. F = $100 (F/A,8%,5) = $100 (5.867) = $586.70

 

D. F = $100 (F/P,8%,5) = $100 (1.469) = $146.90

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