What would the future value of $100 be after 5 years at 10% compound interest? | Homework.Study.com (2024)

Business Finance Future value

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What would the future value of $100 be after 5 years at 10% compound interest?

Future Value:

The future value in finance is the value of your money after a specified period at a fixed rate growing exponentially due to the power of compound interest. This formula is being used in annuities and other forms of investment.

Answer and Explanation:1

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Assuming that 10% is being compounded annually:

To calculate the future value,

{eq}FV~=~P~*~[(1~+~r)^n]\\Where:\\P~=~Periodic~payments\\r~=~in...

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Future Value Definition Formula & Examples

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Chapter 5/ Lesson 16

40K

Understand the definition of future value and the future value formula. Explore some examples that show how to calculate the future value of an investment.

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