What is Future Value?
The value of an asset at a future date is its future value. It is the present value multiplied by the accumulation function, and it represents the nominal amount of money that a particular amount of money will be "worth" at a given point in the future under the assumption of a specific interest rate. Corrections for inflation or other variables that may impact the true value of money in the future are not included in the valuation. Calculations of the time worth of money use this.
The calculation for future valve is shown below
Future value = Payment (1 + Interstate)^years
Future value = 2000(1 + 6.5%)^10
Future value = 2000 1.87714
Future Value = 3,754.2
Main Solution
Therefore the future valve is 3,754.2. Thus the correct option is E)3,754.2
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Answer:
For 20,000 units, we have 170,000
For 26,000 units, we have 266,000
Explanation:
Here, we are to calculate the expected level of income from operations.
Formulas that can come in handy from the table are;
Variable amount per unit = sales/number of units
contribution margin = Sales - Variable cost
Income from operations = Contribution margin - fixed cost
Please, kindly checked attached image for tabulated result calculations.
