Why future value is important to calculate?
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 12Q: What is future value and what is one example where it might be used?
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Why future value is important to calculate?
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Summary Introduction:
Future value is the value of what a certain asset/cash/instrument will be worth at a future specified date due to the interest rate earned over time.
It is calculated using the following formula -
FV = PV(1 + r) ^n
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