Which of the following will result in a future value greater than $100?
A)PV = $50,r = an annual interest rate of 10%,and n = 8 years.
B)PV = $75,r = an annual interest rate of 12%,and n = 3 years.
C)PV = $90,r = an annual interest rate of 14%,and n = 1 year.
D)All of the future values are greater than $100.

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 annual interest rate, and n is the number of years.For option A, the future value is $50 * (1 + 0.10)^8 = $102.86.For option B, the future value is $75 * (1 + 0.12)^3 = $102.43.For option C, the future value is $90 * (1 + 0.14)^1 = $102.60.Therefore, all of the future values are greater than $100.

Which of the Following Will Result in a Future Value