Answer: $1 would be worth approximately $7.039.
Step-by-step explanation:To calculate the future value of $1 growing at 5% per year after 100 years, we can use the compound interest formula:
Future Value = Present Value * (1 + Interest Rate)^Number of Periods
In this case, the present value is $1, the interest rate is 5%, and the number of periods is 100 years.
Let's plug in the values and calculate:
Future Value = $1 * (1 + 0.05)^100
Using a calculator, we find that (1 + 0.05)^100 is approximately 7.039.
Therefore, the future value of $1, growing at 5% per year, after 100 years is:
Future Value = $1 * 7.039 = $7.039
So, after 100 years, $1 would be worth approximately $7.039.