a) the amount of money you will have at a specified date in the future b) the number of investments you will make at a specified date in the future c) the items you will buy with your money at a specified date in the future
a) the amount of money you will have at a specified date in the future
Explanation:
The future value is the importance of the money or the asset at the specific date. And is a measured of the nominal future in the totality of the money that a given money can buy within a specified time in the future with the given certain interest rate.
Here the person has two options to either receive 100$ today or receive 105 in one year. As you will have the cash of 100$ deposited today and hence its value will increase and grow in the near future date.
