Question: Can somebody explain what do you mean by calculating future value of $ 500 with interest 7% and 5 periods. What does it mean by

Can somebody explain what do you mean by calculating future value of $ 500 with interest 7% and 5 periods. What does it mean by periods ? Does it mean value of n=5 years ? Like FV=PV(1+r)^n --> FV= 500(1+0.07)^5= $ 701.27

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