ENTREPRENEURIAL PLANNING
BUSINESS PLAN DEVELOPMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Person Beta deposits $25, 000 into an account that pays 10% annual interest and holds it for 8.5 years. Future Values FV = PV(1+r)^n
|
|
$57300.25
|
|
|
$57833.80
|
|
|
$56205.37
|
|
|
$57338.30
|
Explanation:
Detailed explanation-1: -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.
Detailed explanation-2: -The future value of $900 saved each year for 10 years at an 8% interest rate will be $13, 037.91.
Detailed explanation-3: -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.
There is 1 question to complete.