At an 8% annual rate, what is the future value after 10 years of a $100 investment?

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Multiple Choice

At an 8% annual rate, what is the future value after 10 years of a $100 investment?

Explanation:
Compounding over time raises the future value, calculated as FV = PV × (1 + i)^n. Here PV is 100, i is 0.08, and n is 10, so FV = 100 × (1.08)^10. Computing (1.08)^10 gives about 2.160, which means FV ≈ 100 × 2.160 ≈ 216. So the investment grows to roughly $216 after ten years. The other numbers come from underestimating growth (no interest would be 200, smaller figures like 210 or 212 don’t fully reflect ten years of 8% compounding).

Compounding over time raises the future value, calculated as FV = PV × (1 + i)^n. Here PV is 100, i is 0.08, and n is 10, so FV = 100 × (1.08)^10. Computing (1.08)^10 gives about 2.160, which means FV ≈ 100 × 2.160 ≈ 216. So the investment grows to roughly $216 after ten years. The other numbers come from underestimating growth (no interest would be 200, smaller figures like 210 or 212 don’t fully reflect ten years of 8% compounding).

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