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If you are saving $100 for one year with a 10% annual interest rate, what is the interest earned on interest in your future value?

User Umki
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The interest earned on interest in your future value is $10.

To find the interest earned on interest in your future value, you can use the compound interest formula: A = P(1 + r/n)^(nt), where A is the future value, P is the principal amount (initial investment), r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years. In this case, P = $100, r = 10% or 0.1, n = 1 (compounded annually), and t = 1 year. Plugging in these values into the formula, we get A = $100(1 + 0.1/1)^(1*1) = $110. The interest earned on interest is then the future value minus the principal amount: $110 - $100 = $10.

User Deutro
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