Which of the following is the correct way to compute the future value of $100 put into an account that earns 4 percent interest for 10 years? A) $100(1 + .04¹⁰) B) $100(1 + .0410) C) $100 x 10 x (1 + .04) D) $100(1 + .04)¹⁰

Question

Quizplus · Accepted Answer

The future value of an investment is calculated using the formula FV = PV(1 + r)^n, where PV is the present value, r is the interest rate, and n is the number of periods. Here, PV = $100, r = 0.04, and n = 10.

Which of the Following Is the Correct Way to Compute