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 × 3.5 × (1.035)
D) $100(1.035)³/2

Question

Quizplus · Accepted Answer

To calculate the future value, we need to use 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. In this case, PV = $100, r = 3.5%, and n = 3.5 years. Plugging these values into the formula, we get FV = $100 × (1 + 0.035)³.⁵, which simplifies to $119.17. Therefore, the correct answer is A.

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