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A dollar invested today at 7.5 percent interest compounded annually will be worth _______ one year from now.

User A H K
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Answer:

$1.075.

Step-by-step explanation:

To calculate the future value of a dollar invested at 7.5 percent interest compounded annually for one year, you can use the formula for compound interest:

Future Value = Principal × (1 + Interest Rate)^Number of Periods

In this case, the principal (P) is $1, the interest rate (r) is 7.5 percent (or 0.075 as a decimal), and the number of periods (n) is 1.

Plugging in these values into the formula:

Future Value = $1 × (1 + 0.075)^1

Calculating the expression inside the parentheses:

Future Value = $1 × (1.075)^1

Evaluating the exponent:

Future Value = $1 × 1.075

Calculating the final result:

Future Value = $1.075

Therefore, a dollar invested today at a 7.5 percent interest compounded annually will be worth $1.075 one year from now.

User JonnyCplusplus
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