Final answer:
To find the future value of an ordinary annuity, use the formula: Future Value = Present Value x (1 + Interest Rate) ^ Number of Periods. In this case, the future value is $115.76.
Step-by-step explanation:
To find the future value of an ordinary annuity, you can use the formula:
Future Value = Present Value x (1 + Interest Rate) Number of Periods
In this case, if the simple interest is $5 and the interest rate is 5%, we can substitute the values into the formula:
Future Value = $100 x (1 + 0.05) 3
Simplifying the calculation gives us:
Future Value = $100 x (1.05) 3 = $115.76