Ch 05: Exploring Finance Visualizations- Compounding FVN = PV (1+1)"-$1(1 +0.050)3.0-$1.16 Future Value of $1 1.16 4 5 6 78910 Period Ch 05: Exploring Finance Visualizations- Compounding 1. what is the future value of $1 in Period 4 when the interest rate is 5%? a. $1.00 b. $1.16 C. $1.22 d. $1.63 Select- 2. If the interest rate were 10%, how many periods would it take for the future value to be worth $1.95? a. 3 periods b. 5 periods c. 6 periods d. 7 periods Select- 3. Consider the future value of $1 in 10 periods when the interest rate is 5%, when the interest rate doubles to 10%, the future value: a. Increases but by less than double b. Exactly doubles C. Increases by more than double d. Cannot be determined Select