What is the future value of $100 in 2 years that earns an annual interest rate of 5 percent?
A)$110.41
B)$105.50
C)$110.25
D)$102.25

Question

Quizplus · Accepted Answer

Using the formula for future value (FV) with simple interest: FV = PV(1 + rt), where PV is the present value, r is the annual interest rate expressed as a decimal, and t is the time in years. Plugging in the values, we get FV = $100(1 + 0.05 x 2) = $110.25. The correct answer is C.

What Is the Future Value of $100 in 2 Years