Which of the following best expresses the future value of $100 left in a savings account earning 3.5% for three and a half years?
A)$100(1.035)3.5
B)$100(0.35)3.5
C)$100 x 3.5 x (1.035)
D)$100(1.035)3/2

Question

Quizplus · Accepted Answer

To calculate future value, we need to use the formula:

FV = PV(1 + r)^t

where FV is the future value, PV is the present value, r is the annual interest rate, and t is the number of years.

In this question, PV = $100, r = 3.5%, and t = 3.5 years.

Plugging in these values in the formula, we get:

FV = $100(1 + 0.035)^3.5

Simplifying this expression, we get:

FV = $100(1.035)^3.5

Therefore, the correct answer is A.

Which of the Following Best Expresses the Future Value of $100