An Investment of $1000 Today Invested at 10% For Two Years Will Give a Future Value of

Question: 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 future value is $1210 when $1000 invested at 10% for two years.

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

Thus, the future value is $1210, when $1000 invested at 10% for two years.