Concept explainers
a.
To calculate:Value of investment after one year.
Introduction
The value of an investment or an asset in the future is termed as its future value. It is calculated by multiplying the present value of the investment or asset with its growth rate.
b.
To calculate:Value of investment after two years by using the future value obtained in part (a) as present value.
Introduction
Future Value:
The value of an investment or an asset in the future is termed as future value. It is calculated by multiplying the present value of the investment or asset with its growth rate.
c.
To calculate:Value of investment after two years by using the future value obtained in part (b) as present value.
Introduction
Future Value:
The value of an investment or an asset in the future is termed as future value. It is calculated by multiplying the present value of the investment or asset with its growth rate.
d.
To calculate:Value of investment after three years.
Introduction
Future Value:
The value of an investment or an asset in the future is termed as future value. It is calculated by multiplying the present value of the investment or asset with its growth rate.
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