9What is the FV of an investment of 25000 made today at 10

9)What is the FV of an investment of $25,000 made today at 10 % for 10 years?

10)What is the PV of the investment of $25,000 from question 9?

Solution

Question 9)

FV = PV * (1 + r)n

FV = 25000 * (1 + 10%)10

FV = 25000 * 2.5937

FV = $64,843.56

Question 10

PV of investment is nothing but the value invested today which is $25000

9)What is the FV of an investment of $25,000 made today at 10 % for 10 years? 10)What is the PV of the investment of $25,000 from question 9?SolutionQuestion 9)

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