Author Question: If you put 100 into a bank account that earns five percent interest per year, what is the formula ... (Read 120 times)

kamilo84 · **on:** Jun 29, 2018

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 = Present value (1 + i) B) Future value = (Present value i)
C) Future value = (Present value / i) D) All of these yield the same answer.

Question 2

If a dollar a year from now will likely have less purchasing power because of inflation, then a dollar today ________ a dollar a year from now.

A) is more valuable than B) has the same value as
C) is less valuable than D) may be more valuable or less valuable than