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What is the future value in 7 years if the present value is 1 and the interest rate is 2 annually?
Wiki User
∙ 8y ago
Assuming compound interest:
Future_value = present_value × (1 + interest_rate_per_period)^number_of_periods
We have:
present_value = 1
interest_rate_per_period = 2% per year
number_of_periods = 7 years
(The period is annually or yearly or per year.)
→ future value = 1 × (1 + 2%)^7 = (1+2/100)^7 = 1.02^7 ≈ 1.45 (to 2 dp).
Wiki User
∙ 8y ago
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The present value of future cash flows has what relationship to interest rate?
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What is the difference between present value interest factors versus future value interest factor?
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What is the future value of 100 a year for 10 years earning 4 percent interest?
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Simple interest compounded annually and reinvested will yield 619173.64 before taxes.
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