Respuesta :
The future value of $8,000 received today will be equal to $19,808, considering the rate of interest and time period.
Calculation:
Present value = $8,000
Rate on interest (r) = 12% = 0.12
Time (n) = 8
Future value = present value(1+r) ^n
Future value = 8,000(1.012) ^8 = $19,808.
The worth of a current asset at a certain point in time based on an estimated rate of growth is known as future value (FV). For financial planners and investors planners, the future value is significant because they use it to predict how much an investment amount now will be valuable in the future.
Investors when making wise investment options based on their anticipated demands by understanding the future value. Nevertheless, outside economic forces that degrade an asset's value, such inflation, might have a negative impact on the asset's future worth.
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