If the interest rate is 10 percent, a present value of $100 and a future value of

Question:

“If the interest rate is 10 percent, a present value of $100 and a future value of $133.10 at the end of three years are economically equivalent.” Explain.

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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