Interest Rates and Time
Not what you're looking for?
Discuss how interest rates (r) and time (t) play a role in the calculation of future value or present value. Show an example.
See the attached file.
Purchase this Solution
Solution Summary
This solution discusses how changes in interest rates and time affect an investment's future value. An example is provided for each point discussed.
Solution Preview
The longer the period of time for returns to compound between the current date and the future date, the greater the future value will be.
- For example, if a party invests $100 today at 5 percent interest per year for 10 years, the future value of the investment will be $162.89
- However, if they invest the $100 for 15 years, the future value of the investment will be ...
Purchase this Solution
Free BrainMass Quizzes
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Introduction to Finance
This quiz test introductory finance topics.