Computing the future value


Problem: Calculate the future value of $2000 in:

a. Five years at an interest rate of 5% per year

b. Ten years at an interest rate of 5% per year

c. Five years at an interest rate of 10% per year

d. Why is the amount of interest earned in part (a) less than half the amount of interest earned in part (b)?

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Finance Basics: Computing the future value
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