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 future value of $100 that earns 10% annually for n years is best expressed by the formula FV = PV(1 + r)^n, where PV is the present value, r is the interest rate, and n is the number of years. Substituting PV = $100 and r = 0.1 gives FV = $100(1.1)^n, which matches choice C.

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