If the interest rate is 10 percent per year, and you have $100,000 now, which of the following is closest to what your $100,000 will be worth in three years?

Question

Quizplus · Accepted Answer

To calculate the future value of $100,000 after 3 years at an interest rate of 10%, we can use the formula: FV = PV x (1 + r)^n, where PV is the present value, r is the annual interest rate, and n is the number of years. Plugging in the values, we get: FV = 100,000 x (1 + 0.1)^3 = $133,100. Therefore, the closest answer is D, $133,000.

If the Interest Rate Is 10 Percent Per Year, and You