supposed you invest $500 in a mutual fund today and $600 in one year. if the fund pays 9% annually, how much will you have in tw
1 answer:
If the fund pays 9% annually, you will have $1248.05 in two years.
Future value is the value of a product or investment at some point in the future. In other words, the future value is the amount of money that, assuming a specific rate of return, an investment will be worth after a specific period of time.
According to the concept of present value, money is worth more now than it will be later. In other words, money received in the future is not as valuable as money obtained now in the same amount.
A = Future Value
P = Present value
r = Rate of interest
n = Time period
A =
=
= $1248.05
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