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The future value of a 500 investment with a 5 annual interest rate compounded annually after 5 years is approximately 638.14.

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5mo ago

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Is the face value of an investment the same as its future value?

No, the face value of an investment is not the same as its future value. The face value is the initial value of the investment, while the future value is the value it will have at a later date after earning interest or experiencing changes in market value.


What is an increase in the investment demand curve?

The interest rate is the thing that primarily affects the investment demand curve and an increase in investment indicates a decrease in real interest rate. This makes sense because it is better for borrowers to pay a lower interest rate. Also, better technology can cause the investment demand curve to shift out, also high inventories. If interest rates are expected to be higher in the future, firms will choose to invest now and the lowering of business taxes will result in the investment demand curve to shift outwards.


What is the position of Tycoons Empire international ltd Chennai in MLM business?

How can safe to investment to depositer how can depositer investment to risk to long time how can company profitable and distribut to depositer high interest for depositer investment to 10% p.m. Company working to rbi how can future to company


How are saving and investment related and how do they impact each other?

Saving and investment are related in that saving is the act of setting aside money for future use, while investment involves using saved money to generate potential returns. When individuals save money, they can then choose to invest it in various assets such as stocks, bonds, or real estate. This investment can lead to potential growth of the saved funds through interest, dividends, or capital appreciation. In turn, the returns from investments can increase the amount of savings available for future investment, creating a cycle of saving and investing that can impact one's financial well-being over time.


If the interest rate is zero the future value interest factor equals?

1.0

Related Questions

Future value of 2000 in 5 years at interest rate of 5 percent?

Compounded annually: 2552.56 Compounded monthly: 2566.72


How much would 500 invested at 7 interest compounded annually be worth after 4 years?

To calculate the future value of an investment with compound interest, you can use the formula ( A = P(1 + r)^n ), where ( A ) is the amount of money accumulated after n years, ( P ) is the principal amount (initial investment), ( r ) is the annual interest rate (as a decimal), and ( n ) is the number of years. For an investment of $500 at a 7% interest rate compounded annually over 4 years: ( A = 500(1 + 0.07)^4 \approx 500(1.3108) \approx 655.40 ). So, the investment would be worth approximately $655.40 after 4 years.


What is the future value of 100000 dollars with 20 percent interest in 10 years?

Simple interest compounded annually and reinvested will yield 619173.64 before taxes.


The future value of a 1000 investment today at 8 percent annual interest compounded semiannually for 5 years is?

$1480.24


What is the future value of 100 a year for 10 years earning 4 percent interest?

Assuming the interest is compounded annually, the future value is 100*(1.04)10 = 100*1.4802 (approx) = 148.02


8000 invested for 7 years at 8 percent compounded annually?

Assuming interest is added at the end of the year, the future value is 13,710.59


What is the future value on an ordinary annuity of 12000 dollars per year for three years at 9 percent interest compounded annually?

39,337.20


Can you provide me with compound interest formula sheets?

The compound interest formula is A P(1 r/n)(nt), where: A the future value of the investment P the principal amount (initial investment) r the annual interest rate (in decimal form) n the number of times interest is compounded per year t the number of years the money is invested for You can use this formula to calculate the future value of an investment with compound interest.


How much money will an account have if 600 is invested in an interest rate of 6.5 percent compounded annually for the 3 years?

To calculate the future value of an investment compounded annually, you can use the formula: ( A = P(1 + r)^n ), where ( A ) is the amount of money accumulated after n years, ( P ) is the principal amount (initial investment), ( r ) is the annual interest rate, and ( n ) is the number of years. Here, ( P = 600 ), ( r = 0.065 ), and ( n = 3 ). Plugging in the values: ( A = 600(1 + 0.065)^3 ) Calculating this gives ( A \approx 600(1.207135) \approx 724.28 ). Therefore, the account will have approximately $724.28 after 3 years.


When interest is compounded the total time period is subdivided into several interest periods for example 1 year 3 months 1 month How does compound interest affect the future value of an investme?

The more often interest is compounded (the shorter the interval), the faster the total value of the investment grows, and the more it's worth after any given period of time.


What rate of interest compounded annually is required to double an investment in 16 years?

Future Value = (Present Value)*(1 + i)^n {i is interest rate per compounding period, and n is the number of compounding periods} Memorize this.So if you want to double, then (Future Value)/(Present Value) = 2, and n = 16.2 = (1 + i)^16 --> 2^(1/16) = 1 + i --> i = 2^(1/16) - 1 = 0.044274 = 4.4274 %


What is the future value of 500 invested for 15 years at 5 percent?

It depends how the interest is calculated. If it's compounded, your initial 500 investment would be worth 638.15 after 5 years.