To determine the future value of \[tex]$150 after earning 12 percent interest per year for eight years, we can use the formula for compound interest:
\[
\text{future value} = P \times (1 + i)^t
\]
where:
- \( P \) is the present value, which is \$[/tex]150
- [tex]\( i \)[/tex] is the annual interest rate, which is 12% or 0.12
- [tex]\( t \)[/tex] is the number of years, which is 8
Let's plug in the values:
[tex]\[
\text{future value} = 150 \times (1 + 0.12)^8
\][/tex]
Now, calculate the part inside the parentheses first:
[tex]\[
1 + 0.12 = 1.12
\][/tex]
Then raise this result to the power of 8:
[tex]\[
1.12^8 \approx 2.47509797019
\][/tex]
Now, multiply this result by 150:
[tex]\[
150 \times 2.47509797019 \approx 371.3944764442217
\][/tex]
Thus, the value of \[tex]$150 after eight years, earning 12 percent interest per year, is approximately \$[/tex]371.39. Therefore, the correct answer is:
A. \$371.39
