Question

future value = P × (1+ i)t `"present value" = "P" / (1 + i)^"t"` What would be the value of $100 after 10 years if you earn 11 percent interest per year? A. $259.37 B. $283.94 C. $110.46

Answer 1

B)
`\simeq 283.94` (in $)

Explanation:

Value of $100 after 10 years if I earn 11 % interest per year is given by,

$
`(100 * (1 + (11)/(100))^(10))`

`\simeq 283.94` (in $)

We know that if,

Principal= P

Rate of annual compound interest = r %

Time = n year

then amount, A =
`P * (1 + (r)/(100))^(n)`