Question

future value = P × (1+ i)t `"present value" = "P" / (1 + i)^"t"` What would be the value of $100 after 10 years if you earn 11 percent interest per year? A. $259.37 B. $283.94 C. $110.46

Answer 1

Answer:

B) $\simeq 283.94$  (in $)

Step-by-step explanation:

Value of $100 after 10 years  if I earn 11 %  interest per year is given by,

$ $(100 \times (1 + \frac{11}{100})^{10})$

$\simeq 283.94$  (in $)

We know that if,

Principal= P

Rate of annual compound interest = r %

Time = n year

then amount, A  = $P \times (1 + \frac{r}{100})^{n}$