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 four years?

Question

Quizplus · Accepted Answer

To find the future value of the $100,000 investment, we can use the formula:

FV = PV x (1 + r) ^ n

where: 
PV = present value = $100,000 
r = annual interest rate = 10% = 0.1 
n = number of years = 4

Plugging in these values:

FV = $100,000 x (1 + 0.1) ^ 4 
FV = $100,000 x 1.1 ^ 4 
FV = $100,000 x 1.4641 
FV = $146,410 (rounded to the nearest thousand)

Therefore, the closest answer is C) $146,000.

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