The Future Value of $1,000 Compounded Annually for 8 Years

Multiple Choice

The future value of $1,000 compounded annually for 8 years at 12% may be calculated with the following formula: FV = $1,000 * (1 + 12%) ⁸
If the same $1,000 was compounded quarterly,what formula would you use to calculate the FV?

A) FV = $1,000 * (1 + 3%) ⁸
B) FV = $1,000 * (1 + 12%) ³²
C) FV = $1,000 * (1 + 3%) ³²
D) FV = $1,000 * (1 + 12%) ²