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If you know that the value of an asset is $100 today, what concept will tell you what it will be worth in 5 years given a certain interest rate

Respuesta :

Answer:

future value

Explanation:

Future value is the value of a sum of money at some point in the future given a  certain interest rate.

Formula for future value = present value x ( 1 + r )^n

Assuming i = 10

the future value of $100 in 5 years = 100 x ( 1.1)^5 = $161.05

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