Given below are the future value factors for 1 at 8 for one

Given below are the future value factors for 1 at 8% for one to five periods.

Periods Future Value of 1 at 8%

1 1.080

2 1.166

3 1.260

4 1.360

5 1.469

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

Select one:

a. $5,000 x 1.080 x 3

b. ($5,000 x 1.080) = ($5,000 x 1.166) + ($5,000 x 1.260)

c. $5,000 x 1.260

d. $5,000 ÷ 1.260

We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.

Hence

A=$5000(1+8/100)^3

=$5000(1.08)^3

=$5000*1.260

Hence the correct option is C.