What would be the value of $150 after eight years if you earn 12 percent interest per year?
a) $371.39 b) $415.96 c) $465.88

Question

What would be the value of $150 after eight years if you earn 12 percent interest per year?
a) $371.39 b) $415.96 c) $465.88

anonymous · Answer

Is that simple interest or compound interest?

anonymous · Answer

It just says: Future Interest =  $$P x (1+I)^{t}$$

anonymous · Answer

x just means multipulcation here 
(might have spelt that wrong)

anonymous · Answer

Then that's the formula for compound interest.  Okay, this is fairly easy when you get the hang of it.  
Let: 
P = principal amount of mone(how much money you're starting out with)
I = Interest rate
n = number of years

Replace these letters with the numbers given in the question, and calculate it.

anonymous · Answer

Thank you! (:

anonymous · Answer

What did you get as your answer?

anonymous · Answer

a) $371.39

anonymous · Answer

That's correct!  Good job!

anonymous · Answer

THnak you (: I appreciate your help. (: