Future value formula for simple interest:
FV = I * (1 + R.T)
I = Investment Amount
R = Interest Rate
T = Number of years
= 9250 * (1+ (0.079*(54/12))) = 12538.375
Future cost (FV) is the value of a cutting-edge asset at a destiny date based totally on an assumed fee of growth. The future value is critical to investors and monetary planners, as they use it to estimate how tons funding made nowadays will be really worth in the future.
Future price is what a sum of money invested these days becomes over time, at a fee of the hobby. as an instance, in case you make investments of $1,000 in financial savings account these days at a 2% annual hobby charge, it'll be worth $1,020 at the cease of three hundred and sixty-five days. therefore, its destiny fee is $1,020.
Both buyers and economic planners emphasize future value because it lets them estimate how much an investment today might be really worth in the future. It assists buyers in making sound monetary decisions based totally on their economic objectives.
Learn more about future value here:
https://brainly.com/question/24703884
#SPJ4
