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To discuss: The meaning of future value of an investment.
Introduction:
The
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Explanation of Solution
The future value of money refers to the amount of dollars that an investment grows over a definite period at a particular rate of interest rate. In other words, it refers to the future value of present cash investments.
Example:
If Person A is invests $100 in a fixed deposit account at 10 percent interest, then the value of $100 after one year (future value) will be $110
The future value of money refers to the amount of dollars that an investment grows over a definite period at a given rate of interest rate.
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ESSENTIAL OF CORP FINANCE W/CONNECT
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegeEBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT
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