The future value of $100 that earns 10% annually for n years is best expressed by which of the following?
A)$100(0.1)n
B)$100 × n × (1.1)
C)$100(1.1)n
D)$100/(1.1)n

Question

Quizplus · Accepted Answer

The formula for calculating the future value of a present sum of money is given by FV = PV(1+r)^n, where FV is the future value, PV is the present value, r is the interest rate, and n is the number of years. Substituting the given values, we get FV = 100(1+0.1)^n = 100(1.1)^n, which matches option C.

The Future Value of $100 That Earns 10% Annually for N