BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the amount of money you will have at a specified date in the future
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the number of investments you will make at a specified date in the future
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the items you will buy with your money at a specified date in the future
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Detailed explanation-1: -The time value of money (TVM) is the concept that a sum of money is worth more now than the same sum will be at a future date due to its earnings potential in the interim. The time value of money is a core principle of finance.
Detailed explanation-2: -Future Value (FV) = PV × (1 + r) ^ n Where: PV = Present Value. r = Interest Rate (%) n = Number of Compounding Periods.
Detailed explanation-3: -Future Value is the value at some future time of a present amount of money, or a series of payments, evaluated at a given interest rate.
Detailed explanation-4: -What is the future value of $1, 000 after five years at 8% per year? If compounding monthly, $1, 489.85 is the total compound interest value after five years.
Detailed explanation-5: -The future sum of money is $ 6, 357.38 Substituting the values we have: r (rate) = 9.50% / 2 = 0.0475.