A $100 investment earns 8% annual return. After 1 year, what is value?

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Multiple Choice

A $100 investment earns 8% annual return. After 1 year, what is value?

Explanation:
When a value grows by a percentage in one year, you multiply the starting amount by 1 plus the percentage written as a decimal. For 8%, that factor is 1.08. So 100 × 1.08 equals 108, which is the value after one year. The other numbers would require larger or different growth: 110 would be a 10% increase, 100 would mean no growth, and 112 would correspond to a 12% increase. With an 8% return for one year, the resulting value is 108.

When a value grows by a percentage in one year, you multiply the starting amount by 1 plus the percentage written as a decimal. For 8%, that factor is 1.08. So 100 × 1.08 equals 108, which is the value after one year. The other numbers would require larger or different growth: 110 would be a 10% increase, 100 would mean no growth, and 112 would correspond to a 12% increase. With an 8% return for one year, the resulting value is 108.

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