If you know that the value of an asset is $100 today, what concept will tell you what it will be worth in 5 years given a certai

Question

2 years ago

9

n interest rate

1 answer:

Virty [35] · Answer 1 · 2022-11-12T00:43:46+03:00

Virty [35]2 years ago

6 0

Answer:

future value

Explanation:

Future value is the value of a sum of money at some point in the future given a certain interest rate.

Formula for future value = present value x ( 1 + r )^n

Assuming i = 10

the future value of $100 in 5 years = 100 x ( 1.1)^5 = $161.05