Items 65 Through 68 Apply to the Appropriate Use of Interest

Multiple Choice

Items 65 through 68 apply to the appropriate use of interest tables. Given below are the future value factors for 1 at 8% for one to five periods. Each of the items 65 to 68 is based on 8% interest compounded annually.

-If $5,000 is deposited in a savings account today, what amount will be available three years from today?

A) $5,000 ÷ 1.260
B) $5,000 × 1.260
C) $5,000 × 1.080 × 3
D) ($5,000 × 1.080) + ($5,000 × 1.166) + ($5,000 × 1.260)