What is the future value of $845 a year for seven years at an interest rate of 11.3 percent? $6,683.95 $6,075.69 $8,343.51 $8,001.38 $8,801.91?

The future value of cash whose initial value is $845, at the rate of 11.3% for 7 years will be calculated using the compound interest rate, that is:

A=p (1+r/100) ^n

where:

A=future amount

r=rate=11.3%=0.113

time=7 years

thus the future value of our cash will be:

A=845 (1+0.113) ^7

A=845 (1.113) ^7

A=$1,787.82

In 7 years, you will have $1,787.82