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What affects the future value of an investment more interest rate or time of investment?
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.
What else can I help you with?
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
Is the face value of an investment the same as its future value?
No, the face value of an investment is not the same as its future value. The face value is the initial value of the investment, while the future value is the value it will have at a later date after earning interest or experiencing changes in market value.
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 is the future value of an investment of 500 today, with an interest rate of 5 per year, compounded annually, after 5 years?
The future value of a 500 investment with a 5 annual interest rate compounded annually after 5 years is approximately 638.14.
Can you provide me with compound interest formula sheets?
The compound interest formula is A P(1 r/n)(nt), where: A the future value of the investment P the principal amount (initial investment) r the annual interest rate (in decimal form) n the number of times interest is compounded per year t the number of years the money is invested for You can use this formula to calculate the future value of an investment with compound interest.
What Excel function calculates the future value of an investment?
The FV function calculates the future value of an investment.
Capital ending formula?
The formula for calculating the future value of an investment with compound interest is FV = PV x (1 + r)^n, where FV is the future value, PV is the present value, r is the annual interest rate, and n is the number of periods. This formula helps determine how much an investment will grow over time.
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.
What is the future value formula with contributions and how can it be used to calculate the growth of an investment over time?
The future value formula with contributions calculates the value of an investment in the future, taking into account regular contributions made over time. It can be used by plugging in variables such as the initial investment amount, the interest rate, the frequency of contributions, and the time period. By using this formula, investors can estimate how much their investment will grow over time, helping them make informed decisions about their financial goals.
What is the future value of monthly deposits formula and how can it be used to calculate the growth of an investment over time?
The future value of monthly deposits formula calculates the total value of an investment that receives regular monthly contributions over time. It takes into account the monthly deposit amount, the interest rate, and the number of months the investment is held for. By using this formula, investors can predict how much their investment will grow over time by consistently adding money to it each month.
