If $100 is saved at an annual interest rate of 10%,the return in one year will be:
A) $11.
B) $110.
C) $10.
D) $111.

Question

Quizplus · Accepted Answer

To calculate the return in one year, we need to use the formula:

Return = Principal x Rate

where "Principal" is the amount of money saved and "Rate" is the annual interest rate, expressed as a decimal.

Substituting the given values, we get:

Return = $100 x 0.10 = $10

Therefore, the return in one year is $10.

However, the question asks for the total amount after one year, which includes the original amount saved plus the return.

Total amount = Principal + Return = $100 + $10 = $110

Therefore, the correct answer is choice B, $110.

If $100 Is Saved at an Annual Interest Rate of 10%,the