If the interest rate this year is 8% and the interest rate next year will be 10%,
Question:
If the interest rate this year is 8% and the interest rate next year will be 10%, what is the future value of $1 after 2 years? What is the present value of a payment of $1 to be received in 2 years?
Future ValueFuture 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...
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FV PV 1 r 0 1 r ...View the full answer
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Related Book For 
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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