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:

Sensory Systems

The parts of the body involved in receiving and processing sensory information from the environment, including sight, hearing, taste, touch, and smell.

Hearing

The sensory process by which sound waves are converted into electrical signals and interpreted by the brain, allowing the perception of sound.

Vision

The faculty or state of being able to see; also, a concept or plan regarding the future.

Middle Adulthood

A stage of life, typically considered to be from ages 40 to 65, marked by stability, maturity, and established social and economic roles.