time-value-of-money-6
time-value-of-money-6
The formula to calculate the value of $1 put into savings today is fv = pv*((1+i)^n). The variables are fv = future value, pv = present value, i = interest rate per period, and n = the number of periods. In the formula, n is an exponent. What does the exponent in this case state that you need to do mathematically to the (1 + i) segment of the formula? Select an interest rate and number of periods—be sure your numbers are different from other students who already answered this question—to calculate the future value of $1. How much money would you have at the end of the period you determined if you invested $1 today (pv)?
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