Multiple choice

An interest rate is 5%, number of period are 3, and present value is Rs 100, and then future value will be __________.

  1. 115.76

  2. 105

  3. 110.25

  4. 113.56
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A Correct answer
Explanation

Future Value = PV * (1 + r)^n = 100 * (1.05)^3 = 100 * 1.157625 = 115.76.

AI explanation

Using the compound interest formula for future value, we calculate Amount = Present Value * (1 + Rate/100)^Time. Substituting the given values, we get Amount = 100 * (1 + 0.05)^3. This simplifies to 100 * 1.157625, resulting in a future value of Rs. 115.76.

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