Which of the following best expresses the future value of $100 left in a savings account earning 3.5% for three and a half years?
A)$100(1.035)3.5
B)$100(0.35)3.5
C)$100 × 3.5 × (1.035)
D)$100(1.035)3/2

Question

Quizplus · Accepted Answer

The formula for calculating future value is FV = PV(1 + r)t, where PV is the present value, r is the interest rate, and t is the time period. Plugging in the given values, we get:

FV = $100(1 + 0.035)^3.5
FV = $100(1.035)^3.5
FV ≈ $119.21

So the answer is A, because it correctly calculates the future value of $100 in a savings account earning 3.5% interest for three and a half years. The other choices either use the wrong formula or have incorrect calculations.

Which of the Following Best Expresses the Future Value of $100