Answer:
future value = 240.076 = 240.08
so correct option is $240.08
Explanation:
given data
present value = $125
rate = 8.5 % = 0.085
time = 8 year
to find out
future value
solution
we get here future value that is express as
future value = present value × [tex](1+r)^{t}[/tex] ...........................1
here r is rate and t is time period
put here value in equation 1
future value = present value × [tex](1+r)^{t}[/tex]
future value = $125 × [tex](1+0.085)^{8}[/tex]
future value = 240.076 = 240.08
so correct option is $240.08
