Question: Suppose the interest rate is 10%. If $100 is invested at this rate today, how much will it be worth after one year? After two

Suppose the interest rate is 10%. If $100 is invested at this rate today, how much will it be worth after one year? After two years? After five years? What is the value today of $100 paid one year from now? Paid two years from now? Paid five years from now?

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The future value FV of 100 invested today at an interest rate of 10 is FV 100 100 010 110 Two year... View full answer

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