Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Question

Determine the value of $5.00 that will grow at a rate of 6% after 20 years. Calculate the future value (FV) if the growth rate were 8%.

 

Expert Solution
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Step 1

Given,

Present value = $5.00

Annual interest rate (r) = 6%

Number of periods (n) = 20

Future value (FV) = Present value * (1+r)n

 

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