If the present value is $119.86 and the rate of return is 0.082, how much will you have in one year?

Question

BlackTom AI · Accepted Answer

We start by identifying the given data: present value (PV) = 119.86, and the rate of return (r) = 0.082 per year. The question asks for the value in one year, which is a standard future value (FV) calculation when interest is applied once per period.

Next, apply the future value formula for a single period: FV = PV × (1 + r). Here, 1 + r = 1 + 0.082 = 1.082.

Compute the multiplication: 119.86 × 1.082 equals 119.86 × (1 + 0.082) = 119.86 × 1 + 119.86 × 0.082. We already know 119.86 × 1 = 119.86. For the second part, 119.86 × 0.082 = 9.82852 (since 119.86 × 82 = 9828.52, and dividing by 1000 gives 9.82852).

Add the two pieces: 119.86 + 9.82852 = 129.68852.

Therefore, the mathematically correct future value, to the same precision, is 129.68852. If rounding to two decimals, it would be 129.69.

Note on the provided answer: the value 129.66332 does not match the standard FV calculation with PV = 119.86 and r = 0.082, suggesting a possible rounding difference, a slightly different rate, or a transcription mismatch. Double-check the rate and rounding rules used in your source if you need to align with a specific answer key.

In summary, FV = 119.86 × 1.082 = 129.68852 (≈ 129.69 when rounded to two decimals).

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If the present value is $119.86 and the rate of return is 0.082, how much will you have in one year?

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