After 100 years, a deposit of $1 that compounds annually at 1% returns
A) $2.
B) $2.70.
C) $100.
D) none of the above.

Name: After 100 years, a deposit of $1 that compounds annually at 1% returns A) $2. B) $2.70. C) $100. D) none of the above.
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Question

Quizplus · Accepted Answer

The formula for compound interest is A = P(1 + r/n)^(nt). For this problem, P = $1, r = 0.01, n = 1, and t = 100. Plugging in these values, A = 1(1 + 0.01/1)^(1*100) = 1(1.01)^100 ≈ $2.70.

After 100 Years, a Deposit of $1 That Compounds Annually