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

question 2

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:

Behavior

The actions or reactions of an object or organism, usually in relation to the environment or stimuli.

Psychological Triad

The three essential topics of psychology: how people think, how they feel, and how they behave.

Psychological Health

A state of well-being in which an individual realizes their own abilities, can cope with the normal stresses of life, can work productively, and is able to make contributions to their community.

Clinical Psychology

A branch of psychology focused on diagnosing and treating mental, emotional, and behavioral disorders.