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
