Which of the following will result in a future value greater than $100?

A) PV = $50, r = an annual interest rate of 10%, and n = 8 years.
B) PV = $75, r = an annual interest rate of 12%, and n = 3 years.
C) PV = $90, r = an annual interest rate of 14%, and n = 1 year.
D) All of the future values are greater than $100.


Answer: D
Explanation: D) FV = PV ∗ (1 + r)n = $50 ∗ (1.10)8 = $107.18
$75 ∗ (1.12)3 = $105.37
$90 ∗ (1.14)1 = $102.60

Business

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