Question

Question 1 (1 point) Calculate the future value (FV) of: $1,250 today invested in a financial tool with a rate of return of 8% that compounds once a year for 5 years. $1,858.89 $1,353.25 $1,836.66 $1,350.00 Question 2 (1 point) Calculate the future value (FV) of: $500 today invested in a financial tool with a rate of return of 12% that compounds 12 times a year for 8 years. 20 PWPXO

Answer 1

C.$1,836.66.

question 1;

future value of single amount = amount invested*(1+r)^n

here,

amount invested =$1,250

r=8%=>0.08

n=5

=>$1,250*(1.08)^5

=>$1,836.66.