Items 65 Through 68 Apply to the Appropriate Use of Interest

question 16

Multiple Choice

Items 65 through 68 apply to the appropriate use of interest tables. Given below are the future value factors for 1 at 8% for one to five periods. Each of the items 65 to 68 is based on 8% interest compounded annually.

-What amount should be deposited in a bank account today to grow to $15,000 three years from today?

• A) $15,000 × 1.260
• B) $15,000 × 1.260 × 3
• C) $15,000 ÷ 1.260
• D) $15,000 ÷ 1.080 × 3

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Definitions:

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External expressions or actions by a party indicating intent to adhere to the terms of an agreement or contract.