If you put $100 into a bank account that earns five percent interest per year, what is the formula you should use to determine the account's future value in one year?

Question

Quizplus · Accepted Answer

The formula for future value with compound interest is Future value = [Present value x (1 + i)]. To calculate the future value of the bank account with an initial deposit of $100 and 5% interest, we can plug in the values: Future value = [100 x (1 + 0.05)] = $105. Therefore, the correct answer is C.

If You Put $100 into a Bank Account That Earns