What Is the Future Value of $100 in 2 Years

question 95

Multiple Choice

What is the future value of $100 in 2 years that earns an annual interest rate of 5 percent?

• A)$110.41
• B)$105.50
• C)$110.25
• D)$102.25

Identify the relationship between employee benefits and regulations/laws.

Evaluate the role of technology in managing employee benefits.

Acknowledge the impact of social changes on the design and tailoring of employee benefits programs.

Understand the financial aspects of employee benefits, including contributions, costs, and containment strategies.

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Definitions:

Interest Revenue

Income earned by a company for lending money or through investments in interest-bearing assets.

Lease Rental Revenue

Income earned by a lessor from leasing out assets to lessees, under the terms specified in lease agreements.

Lease Receivable

An asset account on the balance sheet that represents the amount of rent due to the lessor from the lessee according to the lease agreement.

Sales-Type Lease

An arrangement where a lessor sells an asset to a lessee under lease terms, effectively treating the lease as a purchase and sale from an accounting standpoint.