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6 May, 22:54

What is the future value of $375 at an interest rate of 3 percent one year from today? a. $371.75 b. $393.33 c. $386.25 d. none of the above are correct to the nearest cent?

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  1. 7 May, 00:38
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    The future value of a current investment is calculated through the equation,

    F = P x (1 + i) ^n

    where F is the present value, F is the future value, i is the nominal interest rate, and n is the number of years.

    Substituting the known values,

    F = ($375) (1 + 0.03) ^1 = $386.25

    Hence, the answer to this item is letter C.
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Home » Business » What is the future value of $375 at an interest rate of 3 percent one year from today? a. $371.75 b. $393.33 c. $386.25 d. none of the above are correct to the nearest cent?
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