How much would $1, growing at 3.5% per year, be worth after 75 years? a. $12.54b. $13.20c. $13.86d. $14.55e. $15.28

The correct answer is letter "B": $13.20.

Explanation:

The time value of money is a concept that states that a dollar today is always worth more than a dollar tomorrow based on the interest that can be accrued. In that sense, the sooner the money is received, the better since there will be more time for the interest to grow. The future value of money is calculated with the following formula:

FV=PV x [1+ i/n]^((n x t))

Where:

In the example:

FV = ?

PV = $1

i = 3,5%

n = 1

t = 75

Thus,

FV= $1 x [1+ (3,5%)/1]^((1 x 75))

FV= $1 x [1+ (35/10  x 1/100)/1]^((75))

FV= $1 x [1+ (35/1000)/(1/1)]^((75))

FV= $1 x [1+ 35/1000]^((75))

FV= $13,1985 ≅$13,20

answer; /// the best answer to the above question is; the main economic goal that a society consider when deciding the best way to distribute its wealth is equity, this to ensure that all resources are equally distributed; ///(a) (economic equity)

this conflict is person vs. society

if you need further explanations, comment below!

hope this ! < 3