Items 48 Through 51 Apply to the Appropriate Use of Interest

Multiple Choice

Items 48 through 51 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 48 to 51 is based on 8% interest compounded annually.

-If $3,000 is put in a savings account today, what amount will be available three years from today?

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