# If the Interest Rate is 10 Percent, then the Future Value in Two Years of $100 Today is?

We will be using the concept of future value simple interest to answer this.

## Answer: If the Interest Rate is 10 Percent, then the Future Value in Two Years of $100 Today is $120.

Let's solve this step by step.

**Explanation:**

Given:

Principal (P) = $100

Interest Rate (R) = 10% = 0.1

Time (T) = 2 Years

We have to find the Principal (P) here.

Future Value Simple Interest Formula: FV = P(1 + RT)

Where,

FV = Future Value

P = Principal

R = Interest rate

T = time.

Substitute the values in the equation.

FV = 100(1 + 0.1 × 2)

FV = 100(1 + 0.2)

FV = 100(1.2)

FV = $120