If the interest rate is 5% per year and you put $100 into a savings account for 5 years, what is the future value of today's $100?
A)$3,125.00
B)$127.63
C)$105.00
D)$78.35

Name: If the interest rate is 5% per year and you put $100 into a savings account for 5 years, what is the future value of today's $100? A)$3,125.00 B)$127.63 C)$105.00 D)$78.35
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Question

Quizplus · Accepted Answer

Future value = Present value x (1 + interest rate)^time
= $100 x (1 + 0.05)^5
= $100 x 1.2763
= $127.63

Therefore, the best choice is B.

If the Interest Rate Is 5% Per Year and You