Respuesta :
The future value (FV) of an asset at some point in the future is determined by an estimated rate of growth. In simpler terms, after five years, a $100 investment in a savings account earning 4% interest will be worth $122. This exemplifies the idea that time is worth more than money.
How Does Future Value Work?
A financial concept known as future value (FV) assigns a value to an asset based on estimated variables like cashflows or interest rates in the future. An investor might find it helpful to know how much their investment could be worth in five years based on the expected rate of return.
The appropriate choice is e. $161.05.
The lump sum investment's present value is $100. The annual interest rate (I) is 10%. The number of periods (N) is 5.
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