Final answer:
The correct answer is A. The future value of $100 deposited at a 6% interest rate for four years is $126, found using the compound interest formula FV = PV × (1 + r)^n.
Step-by-step explanation:
The future value (FV) of $100 received today and deposited at a 6 percent interest rate compounded annually for four years is calculated using the formula FV = PV × (1 + r)^n, where PV is the present value, r is the annual interest rate, and n is the number of years. In this case, PV = $100, r = 0.06 (6%), and n = 4 years.
Substituting the given values into the formula:
FV = $100 × (1 + 0.06)^4
FV = $100 × (1.262476)
FV = $126.25
Therefore, the correct future value, rounded to the nearest dollar, is $126.