# Find the FV value of $10,000 invested now after five years if the annual interest rate is 8 percent. a. What would be the FV if the interest rate is a simple interest rate? b. What would be the FV if the interest rate is a compound interest rate?

Find the FV value of $10,000 invested now after five years if the annual interest rate is 8 percent.

a. What would be the FV if the interest rate is a simple interest rate?

b. What would be the FV if the interest rate is a compound interest rate?

Compound Interest

Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan. Thought to have originated in 17th century Italy, compound...

a. What would be the FV if the interest rate is a simple interest rate?

b. What would be the FV if the interest rate is a compound interest rate?

Compound Interest

Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan. Thought to have originated in 17th century Italy, compound...

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**Related Book For**

## Introduction to Finance Markets Investments and Financial Management

15th edition

Authors: Melicher Ronald, Norton Edgar

ISBN: 978-1118492673