$1000 compounded at 10% annually over 86 years would be almost $4,000,000.
The value today, of 10,000 dollars from 1948 will be about 99,500 dollars. This is estimated at an interest rate of three and a half percent.
A dollar tomorrow would be worth more to you today when the interest rate is 10 percent compared to 20 percent. This is because a lower interest rate results in a smaller discounting effect, making the present value of that future dollar higher. At 10 percent, the future value is discounted less, meaning it retains more of its worth in today's terms. Conversely, at 20 percent, the dollar's present value decreases more significantly, making it less valuable today.
$1480.24
If you're simply adding five percent onto the value at the end of each of the three years - the final value would be 578.8125
What is the future value of $1,200 a year for 40 years at 8 percent interest? Assume annual compounding.
Present value of streams can be found by dividing the streams with 4 percent interest rate for example if stream is 100 then present value will be present value = 100 / .04
T = 3yrs
A dollar tomorrow is worth less to you today when the interest rate is higher because you could earn more interest on that dollar if you had it today. At a 20% interest rate, the present value of that dollar is lower compared to a 10% interest rate. Specifically, at 20%, the present value of a dollar tomorrow is about 83.33 cents today, while at 10%, it’s about 90.91 cents. Thus, a higher interest rate decreases the present value of future money.
What is the present value of 500 to be recieved 10 yrs from today if it is discount at the rate of 6 percent?
102102.52
Future value= 25000*(1.08)10 =53973.12
The 12 percent nominal interest means that your money will increase in value by 12% in a year's time in NOMINAL terms.However, the inflation rate of 13 percent says that the cost of goods will increase faster than the value of your deposit.Hence the REAL effect is that the value of your money will fall by 1 percent.