Lecture Notes on Time Value of Money

This first year the investment returns 5%, the second year it returns i. Write an expression, using i, that represents the future value of the investment at the end of two years. Answer: FV=1,000 x (1.05) x (1+i) 11. An investment is worth $50,000 today. This first year the investment returns 9%, the second year it … ................
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