You are scheduled to receive $14,000 in two years. When you receive it, you will invest it at 5.5...
Question:
You are scheduled to receive $14,000 in two years. When you receive it, you will invest it at 5.5 percent per year. How much will your investment be worth 10 years from now?
Future Value Factor:
An investor knows the deferred lump sum investment amount's appreciated value by applying the future value factor. Investors utilize the factor when they are sure about the period of the deferred investment.
Answer and Explanation: 1
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View this answerCalculation of the future value:
{eq}\begin{align*} {\rm\text{Value after 10 years}}& = {\rm\text{Value after 2 years}} \times {(1 +...
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Present and Future Value: Calculating the Time Value of Money
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Chapter 11 / Lesson 2
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Study the time value of money formula. Learn the time value of money definition and practice how to calculate time value of money to understand the relation to purchasing power.
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