Calculate the future value of $2000 in a. 5 years at an interest rate of 5% per

Question:

Calculate the future value of $2000 in

a. 5 years at an interest rate of 5% per year.

b. 10 years at an interest rate of 5% per year.

c. 5 years at an interest rate of 10% per year.

d. Why is the amount of interest earned in part (a) less than half the amount of interest earned in part (b)?

Future Value
Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth...