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What is the future value of a $100 investment after one year at an interest rate of 10 percent?

Name: Fundamentals of Corporate Finance
Author: ROSS
ISBN: 978-1-265-55360-9

The future value of a $100 investment after one year at an interest rate of 10 percent is $110.

Key points

Future value (FV) is the amount an investment grows to over time at a given interest rate.
For a single-period investment of $100 at 10 percent interest, the future value is calculated as $100 × 1.10 = $110.
The future value includes the original principal plus the interest earned.

Source:Fundamentals of Corporate Finance· Introduction to Valuation: The Time Value of Money· p. 178

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