What is the future value in 2 years of $100 today at an interest rate of 10 percent? | Homework.Study.com (2024)

Business Finance Future value

Question:

What is the future value in 2 years of $100 today at an interest rate of 10 percent?

Future Value:

In the context of finance, an amount invested today in a financial asset grows throughout the investment on the basis of the relevant interest rate, frequency of compounding, and time remaining until maturity. The future value of the investment is based on the before-mentioned factors.

Answer and Explanation:1

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The calculated future value of the investment in 2 years is $121.

The future value of the investment after 2 years is given by:

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Future Value Definition Formula & Examples

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Chapter 5/ Lesson 16

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Understand the definition of future value and the future value formula. Explore some examples that show how to calculate the future value of an investment.

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What is the future value in 2 years of $100 today at an interest rate of 10 percent? | Homework.Study.com (2024)

FAQs

What is the future value in 2 years of $100 today at an interest rate of 10 percent? | Homework.Study.com? ›

The calculated future value of the investment in 2 years is $121.

What is the future value of $100 at 10 percent simple interest for 2 years? ›

$121 is the future value of $100 in two years at 10%.

What is the present value of $100 received in 2 years at a 10% interest rate? ›

Option B ($83) is the correct answer. Therefore, If the interest rate is 10%, then the present value of $100 to be paid in 2 years is $83.

What is the present value of 100$ next year if interest rate is 10%? ›

If the appropriate interest rate is 10 percent, then the present value of $100 spent or earned one year from now is $100 divided by 1.10, which is about $91. This simple example illustrates the general truth that the present value of a future amount is less than that actual future amount.

How much is $100 at the end of each year forever at 10% interest worth today? ›

So, a $100 at the end of each year forever is worth $1,000 in today's terms.

What is the present value of $100 in 2 years? ›

Answer and Explanation: The calculated present value of $100 to be paid in 2 years is $82.64.

How many years would it take to double $100 if it earned interest at a rate of 8% per year? ›

Rule of 72

Simply divide the number 72 by the annual rate of return to determine how many years it will take to double. For example, $100 with a fixed rate of return of 8% will take approximately nine (72 / 8) years to grow to $200.

What would the future value of $100 be after 5 years at 10 compound interest? ›

The $100 investment becomes $161.05 after 5 years at 10% compound interest.

What is $100 in a savings account and the interest rate was 2% per year after 5 years? ›

Question 1 - interest:

Suppose you had $100 in a savings account and the interest rate was 2% per year. After 5 years, how much do you think you would have in the account if you left the money to grow? Answer: C, more than $102. The interest earned increases each year.

What is the compound interest on 2000 for 2 years at the rate of 10% per annum? ›

420. ∴ The compound interest on ₹2000 at 10% p.a. for 2 years, compounded annually, is Rs. 420.

How do you calculate future value? ›

The future value formula is FV=PV(1+i)n, where the present value PV increases for each period into the future by a factor of 1 + i. The future value calculator uses multiple variables in the FV calculation: The present value sum. Number of time periods, typically years.

What is the present value of a payment of $100 one year from today if the interest rate is 5 percent? ›

Expert-Verified Answer

The present value of a payment of $100 one year from today, with an interest rate of 5%, is $95.24.

What is the future value of $900 at 7 percent after 5 years? ›

Answer. Final answer: The future value of $900 at a 7 percent interest rate after 5 years is calculated using the compound interest formula, resulting in a future value of $1262.30. So, the future value of $900 at a 7 percent interest rate after 5 years is $1262.30.

What will $10 000 be worth in 30 years? ›

Over the years, that money can really add up: If you kept that money in a retirement account over 30 years and earned that average 6% return, for example, your $10,000 would grow to more than $57,000. In reality, investment returns will vary year to year and even day to day.

What will $1 000 be worth in 20 years? ›

As you will see, the future value of $1,000 over 20 years can range from $1,485.95 to $190,049.64.
Discount RatePresent ValueFuture Value
17%$1,000$23,105.60
18%$1,000$27,393.03
19%$1,000$32,429.42
20%$1,000$38,337.60
25 more rows

How much to save $1,000,000 in 10 years? ›

In order to hit your goal of $1 million in 10 years, SmartAsset's savings calculator estimates that you would need to save around $7,900 per month. This is if you're just putting your money into a high-yield savings account with an average annual percentage yield (APY) of 1.10%.

What is future value of $100 invested at 10% simple interest for 3 years? ›

The future value of $100 at a 10% simple interest rate for 3 years is $130. This calculation uses the simple interest formula by multiplying the principal amount by the interest rate and the time period, resulting in a total simple interest of $30.

What is the future value of $10.000 on deposit for 2 years at 6% simple interest? ›

Answer & Explanation

The future value of $10,000 on deposit for 2 years at 6% simple interest is $11,200.

What would the future value of $100 be after 5 years at 10% compound interest? ›

The $100 investment becomes $161.05 after 5 years at 10% compound interest.

What is the future value of $100 invested at 10% compounded annually for 10 years? ›

Expert-Verified Answer

The future value of the $100 investment, compounded annually at a 10% interest rate for 10 years, is approximately $259.37. So, the investment of $100, compounded annually at a 10% interest rate over 10 years, is projected to grow to around $259.37 in the future.

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