Question

If you put $100 into a bank account that earns five percent interest per year, what is the formula you should use to determine the account's future value in one year? Group of answer choices Future value equals the present value multiplied by the rate of interest. Future value equals the present value divided by the rate of interest. All of these yield the same answer. Future value equals the present value multiplied by one plus the rate of interest in decimals.

Answer 1

Future value equals the present value multiplied by one plus the rate of interest in decimals.

Step-by-step explanation:

Future value = present value x (1 + interest rate)

Interest rate = present value x interest rate