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What is the future value of 100000 dollars with 2 per cent interest in 15 years?
At 2% compound interest, it will be 134,586.83 dollars - at today's prices. What inflation will do its real value is anyone's guess.
How do you find the compound interest of a bank account?
The formula for compound interest is FV = PV * (1 + i) ^ t Where FV = Future Value PV = Present Value t = time i = interest rate As an example, suppose you have $100 now, the interest rate is 5%, and the time is 4 years. The future value is then FV = $100 * (1 + 0.05) ^ 4 = $100 * (1.05)^4 = $100 * 1.21550625 =~ $121.55 After four years, you will have $121.55. Note the answer has been rounded to the nearest cent.
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 value of compound interest?
Compound interest increases the amount earned by adding credited interest to the principal, and interest will then be earned on that money as well. The longer the principal and interest remain in the account, the greater the earnings they will accrue.
