What are the correct variables when calculating the future valueof $1000 invested today at 8%...

What are the correct variables when calculating the future value of $1000 invested today at 8% in 12 years?
What is the future value of this investment?

Solutions

Expert Solution

Amount Invested today = $1000

Formula for Future Value:-

FV = PV(1+i)^N

So, the correct variables for solving the future value is,

FV = Future Value

PV = Present Value = $1000

i = Interest rate = 8%

N = No of years = 12 years

Now, calculating the Future Value of investment:-

FV = $1000*(1+0.08)^12

= $1000*2.51817011682

= $2518.17

So, the future value of this investment is $2518.17

jeff jeffy answered 2 years ago

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