Question 13 Which of the following is False: The future value of $800 deposited today would be greater if that deposit earned 8% rather than 7.75%. Simple interest only earns interest on the principal of the initial investment. The future value of $1,000 compounded quarterly for 8 years at 12% may be calculated with the following formula: FV = $1,000 (1 + 3%)32 The future value of a $1 annuity compounded at 5% annually is greater than the future value of a $1 annuity compounded at 5% semi-annually