A commercial bank buys a $50,000 government security from a securities dealer. the bank pays the dealer by increasing the dealer
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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
To learn more about Future Value
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