Use the Compound Interest Formula to Compute the Future Value

question 22

Multiple Choice

Use the compound interest formula to compute the future value of the investment.
-$5500 at 8% compounded monthly for 7 years

• A)$7688.66
• B)$9610.82
• C)$196,473.48
• D)$5761.86

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Definitions:

Debtor

A person, company, or country that owes money.

Surety

A surety involves a third party agreeing to take on the obligation of paying back a debt or performing a duty if the primary obligor fails to do so.

Creditor

A person or entity to whom money is owed by another entity, known as the debtor, for goods, services, or loans provided.

Debtor's Debt

The obligation of money owed by a debtor to a creditor.