Answer:
The answer is c. $3,883.27
Explanation:
For the problem, we will be using the formula for calculating the Future Value of money, which is:
[tex]F= P(1+r)^{n}[/tex]
Where:
F - future value
P - Principal amount = ($100)
r - rate of growth in percent = (5% or 0.05)
n - number of years = (75)
We calculate thus:
[tex]F = 100(1 + 0.05)^{75}[/tex]
[tex]F[/tex] = [tex]100(1.05)^{75}[/tex]
[tex]F = 100 X 38.8327[/tex]
[tex]F = 3,883.27[/tex]
therefore the amount after 75 years will be $3,883.27
