Future Value

Future Value - Future Value Question: If you invest $100 at...

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Future Value Question : If you invest $100 at 10% for one year, how much money will you have? 1 0 1 $100 $?
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Future Value Investing in a Single Period : If you invest $100 at 10% for one year, how much money would you have? $ 10 interest ($100)(10%, or .10) + $ 100 principal ( original investment ) = $110 2
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Future Value Investing in a Single Period : If you invest for one period at an interest rate of r, your investment will grow to (1+r) per dollar invested. 1 is the return of principal; r is the interest earned. At 10% ( r = 10%), a $1 investment grows to (1 + . 1), or $1.10 for each dollar invested. 3
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Future Value Investing in a Single Period : Using a timeline, $100 invested today ( t =0) for one period at 10% ( r = 10%) is $110. 4 0 1 $100 $110 r = 0.1
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Period Investing for more than one period refers to moving a single dollar forward or backward on the timeline for more than one period . 5
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This note was uploaded on 01/24/2012 for the course FIN 4260 taught by Professor Victorwakeling during the Spring '12 term at Kennesaw.

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Future Value - Future Value Question: If you invest $100 at...

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