ENTREPRENEURIAL PLANNING
BUSINESS PLAN DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Person Alpha plans to deposit an amount into an account that pays 8% annual interest, and to hold it over 10 years with an account balance goal of $10, 000. Present Values PV = FV/(1+r)^n
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$4529.24
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$4484.36
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$4631.93
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None of the above
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Explanation:
Detailed explanation-1: -What is the future value of $1000 in 5 years at 8? An investment of $1, 000 made today will be worth $1, 480.24 in five years at interest rate of 8% compounded semi-annually.
Detailed explanation-2: -In its most basic form, the formula for future value (FV) is FV= PV*(1+i)^n, where “PV” equals the present value, “i” represents the interest rate and “n” represents the number of time periods.
There is 1 question to complete.