Concept explainers
Future Value Business and finance texts refer to the value of an investment at a future time as its future value. If an investment of P dollars is compounded yearly at an interest rate of
In this formula,
Financial officers normally calculate this (or look it up in a table)
a. What future value interest factor will make an investment double?
b. Say you have an investment that is compounded yearly at a rate of
c. Use the results from part b to calculate the 7-year future value if your initial investment is
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