select the correct answer.\nfuture value = p × (1 + i)^t\npresent value = \\frac{p}{(1 + i)^t}\nwhat would…

select the correct answer.\nfuture value = p × (1 + i)^t\npresent value = \\frac{p}{(1 + i)^t}\nwhat would be the value of $100 after 10 years if you earn 11 percent interest per year?\na. $259.37\nb. $283.94\nc. $110.46

select the correct answer.\nfuture value = p × (1 + i)^t\npresent value = \\frac{p}{(1 + i)^t}\nwhat would be the value of $100 after 10 years if you earn 11 percent interest per year?\na. $259.37\nb. $283.94\nc. $110.46

Answer

Explanation:

Step1: Identify values

$P = 100$, $i=0.11$, $t = 10$

Step2: Apply future - value formula

$FV=P\times(1 + i)^t=100\times(1 + 0.11)^{10}$ $FV = 100\times(1.11)^{10}$ $(1.11)^{10}\approx2.8394$ $FV=100\times2.8394 = 283.94$

Answer:

B. $283.94$