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Author Question: A 100 deposit today that earns an annual interest rate of 10 is worth how much at the end of two ... (Read 155 times)

Davideckstein7

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on: Jul 10, 2018
A 100 deposit today that earns an annual interest rate of 10 is worth how much at the end of two years? Assume all interest received at the end of the first year is reinvested the second year.
 
  A) 100
  B) 120
  C) 121
  D) 122

Question 2

The one-time payment of money at a future date is often called a ________.
 
  A) lump-sum payment
  B) present value
  C) principal amount
  D) perpetuity payment


ricroger

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Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: C
Explanation: C) FV = PV  (1 + r)n = 100  (1.10)2 = 121.00
MODE = END
INPUT 2 10 -100 0 ?
KEY N I/Y PV PMT FV
CPT 121.00

Answer to Question 2

Answer: A


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