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 x n x (1.1)
C)$100(1.1)n
D)$100/(1.1)n

Question

Quizplus · Accepted Answer

The formula for future value with annual compounding is FV = PV x (1 + r)^n, where PV is the present value, r is the annual interest rate as a decimal, and n is the number of years. Plugging in the values from the question, we get FV = 100 x (1 + 0.1)^n, which simplifies to 100(1.1)^n. Therefore, the correct answer is C.

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