Compute the future value of $2,500 compounded annually for a. 10 years at 6 percent b. 10
Question:
a. 10 years at 6 percent
b. 10 years at 8 percent
c. 20 years at 6 percent
d. Why is the interest earned in part (c) not twice the amount earned in part (a)?
Future Value
Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth...
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Related Book For
Corporate Finance Core Principles and Applications
ISBN: 978-0077905200
3rd edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
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