Business Finance Future value

## Question:

To what amount will the following investment accumulate?

$5,000 invested for 10 years at 10 percent compounded annually

## Investment:

Investment refers to the utilization of funds by an individual or institute to earn a return. By investing excess funds, an investor can earn a return over the amount invested over a period of time.

## Answer and Explanation:1

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The amount will be **$12,968.71**.

Given:

Invested amount or present value (PV) = $5,000.

Number of years (n) = 10

Rate of interest (r) = 10%

The...

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Future Value Definition Formula & Examples

from

Chapter 5/ Lesson 16

40K

Understand the definition of future value and the future value formula. Explore some examples that show how to calculate the future value of an investment.

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