An investment of $1000 today invested at 10% for two years will give a future value of?
The future value is the return amount we get at the end of the maturity period.
Answer: The investment of $1000, invested at 10% for two years will give a future value of $1210.
Let us find the future value of the invested amount.,
Explanation:
Let us consider that the amount is invested in compound interest.
Future value = Present value × (1+ interest rate)n {where n is time in the years}
Future value = 1000 × (1 + 10/100)2
F.V = 1000 × ( 1 + 0.1)2
F.V = 1000 × ( 1.1)2
F.V = 1000 × 1.21
F.V = 1210