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 determining the future value of an account after one year of earning interest is FV = PV(1+i), where FV is the future value, PV is the present value, and i is the interest rate as a decimal. This formula takes into account the initial amount deposited (PV) as well as the interest earned (PV × i) over the course of the year, resulting in a total future value of (PV × (1+i)). Option C is the only one that correctly represents this formula.

If You Put $100 into a Bank Account That Earns