Respuesta :
The value three years from now of $3,200 deposited today that will earn an annual return of 7% will be $3920.14
To find the future value use the formula FV = PV ( 1 + i )n ; where "FV" is the future value, "PV" is present value, "i" is the interest rate and "n" is the number of period. Here, FV = 3200 ( 1 + 0.07 )*3 = $3,200 ( 1.22504 ) = $3920.14
Future value (FV) is the price of a current asset at a future date based on an assumed fee of growth. The future value is essential to investors and financial planners, as they use it to estimate how a whole lot an funding made today may be well worth within the destiny.
The existing cost components is PV=FV/(1+i)n, in which you divide the future value (FV) with the aid of a aspect of 1 + i for each length among present and future dates. Input those numbers in the present value (PV).
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