Answer
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Step 1:: Identify the formula for calculating the future value of a present amount.
FV = PV (1 + r)^n
The formula is: where: FV = Future Value PV = Present Value ($100 in this case) r = annual interest rate (7% or 0.07 as a decimal) n = number of years (10)
Step 2:: Plug in the values into the formula.
FV = 100 (1 + 0.07)^{10}
Step 3:: Calculate the value of the expression in the parentheses.
FV = 100 (1.07)^{10}
Step 4:: Calculate the value of the future value.
FV \approx 196.72
Using a calculator, we find that:
Final Answer
The future value of $100 at 7 percent in 10 years is approximately $196.72.
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