Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Year
1 14,000
2 19,000
3 31,000
4 0
5 0
6 0
7 130,000
what is the
3%,
11%,
and
18%
interest rates at the end of year 7
Expert Solution
Step 1
Future value refers to the future value of a current asset based on a certain rate of interest.
It is important for every investor to know what will be the future worth of an asset if it is invested at a certain rate of interest. This enables the investor to make a sound investment decision based on his needs.
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