In the table, the future value of $1,000 at 10% interest after 3 years is Blank______. (1)Beginning Period Value(2) Computation (3) Total Interest (4) End Period Value$1,000 (Year 1)$1,000 (Year 1)$1,000×1.10=$1,100$1,000×1.10=$1,100$100$1001,100 (=$1,000+$100)1,100 (=$1,000+$100)$1,100 (Year 2)$1,100 (Year 2)$1,100×1.10=$1,210$1,100×1.10=$1,210$210 (=$100+110)$210 (=$100+110)1,210 (=$1,000+$210)1,210 (=$1,000+$210)$1,210 (Year 3)$1,210 (Year 3)$1,210×1.10=$1,331$1,210×1.10=$1,331$331 (=$100+$110+$121)$331 (=$100+$110+$121)1,331 (=$1,000+$331)1,331 (=$1,000+$331)Multiple choice question.$1210$1331$1100$331
Question
In the table, the future value of 1,000 (Year 1)1,000×1.10=1,000×1.10=1001,000+1,000+1,100 (Year 2)1,100×1.10=1,100×1.10=210 (=210 (=1,000+1,000+1,210 (Year 3)1,210×1.10=1,210×1.10=331 (=110+331 (=110+1,000+1,000+12101100$331
Solution
The future value of 1331.
Similar Questions
Multiple Choice QuestionIn the table, what is the present value of the value of money earned after 3 years at 10% interest? (1)Beginning Period Value(2) Computation (3) Total Interest (4) End Period Value$1,000 (Year 1)$1,000 (Year 1)$1,000×1.10=$1,100$1,000×1.10=$1,100$100$1001,100 (=$1,000+$100)1,100 (=$1,000+$100)$1,100 (Year 2)$1,100 (Year 2)$1,100×1.10=$1,210$1,100×1.10=$1,210$210 (=$100+110)$210 (=$100+110)1,210 (=$1,000+$210)1,210 (=$1,000+$210)$1,210 (Year 3)$1,210 (Year 3)$1,210×1.10=$1,331$1,210×1.10=$1,331$331 (=$100+$110+$121)$331 (=$100+$110+$121)1,331 (=$1,000+$331)1,331 (=$1,000+$331)Multiple choice question.$1331$1000$1100$331$1210
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