What is the future value of 750 after 3 years at 4% annual compound interest?

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Multiple Choice

What is the future value of 750 after 3 years at 4% annual compound interest?

Explanation:
Future value with annual compounding uses the factor (1 + r) raised to the number of years, multiplied by the present value. Here that’s 750 × (1.04)^3. (1.04)^3 equals 1.124864, so 750 × 1.124864 = 843.648, which rounds to 843.65. So the amount after 3 years is 843.65. The other numbers come from different assumptions (for example, simple interest or incorrect compounding) and don’t reflect three years of growth at 4% compounded annually.

Future value with annual compounding uses the factor (1 + r) raised to the number of years, multiplied by the present value. Here that’s 750 × (1.04)^3. (1.04)^3 equals 1.124864, so 750 × 1.124864 = 843.648, which rounds to 843.65. So the amount after 3 years is 843.65. The other numbers come from different assumptions (for example, simple interest or incorrect compounding) and don’t reflect three years of growth at 4% compounded annually.

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