The future value of $100 at a 5% per year interest rate at the end of one year is:
A) $95.00
B) $105.00
C) $97.50
D) 107.50

Question

Quizplus · Accepted Answer

To calculate the future value of $100 at 5% per year interest rate at the end of one year, we use the formula:
Future Value = Present Value x (1 + interest rate)
= $100 x (1 + 0.05)
= $100 x 1.05
= $105.00
Therefore, the best choice is B, which corresponds to $105.00.

The Future Value of $100 at a 5% Per Year