BUISENESS MANAGEMENT
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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None of the above
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Detailed explanation-1: -Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value is important to investors and financial planners, as they use it to estimate how much an investment made today will be worth in the future.
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: -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-5: -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. A sum of money in the hand has greater value than the same sum to be paid in the future.