The Future Value of $1,000 Compounded Annually for 8 Years

question 9

Multiple Choice

The future value of $1,000 compounded annually for 8 years at 12% may be calculated with the following formula: FV = $1,000 * (1 + 12%) 8
If the same $1,000 was compounded quarterly,what formula would you use to calculate the FV?

• A) FV = $1,000 * (1 + 3%)8
• B) FV = $1,000 * (1 + 12%)32
• C) FV = $1,000 * (1 + 3%)32
• D) FV = $1,000 * (1 + 12%)2

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Definitions:

Circumstantial Evidence

Indirect evidence that implies a fact but does not directly prove it.

Direct Evidence

Evidence that directly proves a fact without needing inference or presumption.

Court

A tribunal, often a governmental institution, with the authority to adjudicate legal disputes between parties and carry out the administration of justice.

Relevant Evidence

Information presented in court that directly relates to the facts in dispute and can help prove or disprove a point.