If You Put $100 into a Bank Account That Earns

question 223

Multiple Choice

If you put $100 into a bank account that earns five percent interest per year,what is the formula you should use to determine the account's future value in one year?

• A)Future value equals the present value divided by the rate of interest.
• B)Future value equals the present value multiplied by the rate of interest.
• C)Future value equals the present value multiplied by one plus the rate of interest in decimals.
• D)All of these yield the same answer.

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Definitions:

Alternative

A different option or choice available in a situation, offering a variation from the usual.

Management Function

The roles and actions performed by managers to plan, organize, lead, and control an organization’s activities.

Setting Objectives

The process of identifying specific goals and targets that an individual or organization aims to achieve within a specified timeframe.

Planning

The process of setting objectives, outlining tasks, and allocating resources to achieve goals.