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Assume an annual interest rate of 8%. You have $1. What is the value of the $1 one year in the future

1 Answer

4 votes

Answer:

the future value is $1.08

Step-by-step explanation:

The computation of the future value is shown below:

As we know that

Future value = Present value × (1 + rate of interest)^number of years

= $1 × (1 + 0.08)^1

= $1 × 1.08

= $1.08

Hence, the future value is $1.08

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