EBK CFIN
EBK CFIN
6th Edition
ISBN: 9781337671743
Author: BESLEY
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 4, Problem 2PROB
Summary Introduction

Fifteen years ago, X purchased an investment for $2,500. The interest rate is 6% and current value has to be calculated.

Future value is the value of the current investment or series of payments in the future compounded at predetermined interest rate for a specified period.

FV=PV(1+r)n

Here,

The future value is “FV”.

The present value is “PV”.

The interest rate is “r”.

The maturity period of time period is “n”.

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