Use estimation to select the best response. If you deposit $50 in a bank account for a year, the future value is likely to be $__________.
A) $\$ 10.00$
B) $\$ 51.50$
C) $\$ 25.00$
D) $\$ 0.01$
E) $\$ 1.50$

Question

Quizplus · Accepted Answer

To estimate the future value of the deposit, we can use a simple interest formula which is $50*(1+r*t) where r is the interest rate and t is the time period in years. Assuming an interest rate of 3% (a typical interest rate for a savings account), the future value would be approximately $51.50, making option B the best choice. Options A, C, D, and E are significantly lower and can be eliminated based on estimation.

Use Estimation to Select the Best Response $10.00\$ 10.00$10.00 B) $51.50\$ 51.50$51.50

Use Estimation to Select the Best Response $\$ 10.00$ B) $\$ 51.50$