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.

---

Definitions:

Incentive Scheme

A plan or program designed to motivate and reward employees in order to improve their performance and productivity.

High Quality Automotive Repair

The provision of superior services in fixing and maintaining vehicles to ensure optimal performance.

Market Price

The current price at which an asset or service can be bought or sold in a given market.

Marginal Cost Function

A mathematical representation showing how the cost of producing one additional unit of a good changes as the quantity of production varies.