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What affects the future value of an investment more interest rate or time of investment?
Wiki User
∙ 12y ago
That depends on the specifics of the details. For a long loan varying the time of investment might not make much difference since the proportion of the change is small while the interest rate will have a large impact. For a short loan varying the interest rate might not have time to have much impact while variations in the length might make a large impact (being bigger changes proportionally). The two depend on each other too much to have a general rule about which has a bigger impact, you need to first narrow your region of interest down to a general range of rates and times and then see which has a bigger impact in that region with some quick calculations.
Wiki User
∙ 12y ago
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What is the formula for determining the future value of cash?
Fn = P (1 + r )n where F n = accumulation or future value P = one-time investment today r = interest rate per period n = number of periods from today
The present value of future cash flows has what relationship to interest rate?
The present value of future cash flows is inversely related to the interest rate.
What is the difference between present value interest factors versus future value interest factor?
The Present Value Interest Factor PVIF is used to find the present value of future payments, by discounting them at some specific rate. It decreases the amount. It is always less than oneBut, the Future Value Interest Factor FVIF is used to find the future value of present amounts. It increases the present amount. It is always greater than one.
What is the future value of 1200 a year for 40 years at 8 percent interest?
What is the future value of $1,200 a year for 40 years at 8 percent interest? Assume annual compounding.
What is the future value of 100 a year for 10 years earning 4 percent interest?
Assuming the interest is compounded annually, the future value is 100*(1.04)10 = 100*1.4802 (approx) = 148.02
How does compound interest affect the future value of an investment?
Increases
Does the future value of an investment increases as the number of years of compounding at a positive rate of interest declines?
No, the future value of an investment does not increase as the number of years of compounding at a positive rate of interest declines. The future value is directly proportional to the number of compounding periods, so as the number of years of compounding decreases, the future value of the investment will also decrease.
What Excel function calculates the future value of an investment?
The FV function calculates the future value of an investment.
The future value of a 1000 investment today at 8 percent annual interest compounded semiannually for 5 years is?
$1480.24
What is maturity value?
The new value to a loan or investment after interest.
What does FV stand for in Excel?
It is a financial function. It returns the future value of an investment based on an interest rate and a constant payment schedule. So if you are paying in a set amount on a regular basis, like every month, and there is a fixed interest rate, it can work out how much your investment will be worth. See the link below for more details.
The value of an investment after one or more time periods is called?
Future Value
A loan at 6 percent interest over 5 years What is the total output?
If the interest is simple interest, then the value at the end of 5 years is 1.3 times the initial investment. If the interest is compounded annually, then the value at the end of 5 years is 1.3382 times the initial investment. If the interest is compounded monthly, then the value at the end of 5 years is 1.3489 times the initial investment.
Future Value Calculator?
Future Value Calculator Use this calculator to determine the future value of an investment which can include an initial deposit and a stream of periodic deposits.
What is the formula for determining the future value of cash?
Fn = P (1 + r )n where F n = accumulation or future value P = one-time investment today r = interest rate per period n = number of periods from today
The present value of future cash flows has what relationship to interest rate?
The present value of future cash flows is inversely related to the interest rate.
What is the future value of 500 invested for 15 years at 5 percent?
It depends how the interest is calculated. If it's compounded, your initial 500 investment would be worth 638.15 after 5 years.
