Which of the Following Is Closest to the Future Value

question 7

Multiple Choice

Which of the following is closest to the future value of a $100 deposit earning 5 percent interest annually after 5 years?

• A)$125
• B)$128
• C)$1,268
• D)$105

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Definitions:

Expected Utility

A theory in economics that calculates the utility or satisfaction expected from different possible outcomes, accounting for risk and uncertainty.

Stock Tip

Advice or information provided to investors about a stock that is expected to perform well.

Utility of Income

The perceived value or satisfaction obtained from income and the goods and services it can purchase.

Expected Utility

A theory in economics that calculates the utility expected from different outcomes, considering their probabilities.