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You want to know how much $10,000 invested today is going to be worth 10 years...

You want to know how much $10,000 invested today is going to be worth 10 years from now. Which type of time value of money calculation should be used to solve this problem?

present value of an annuity

future value of an annuity

present value of a lump sum

future value of a lump sum

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Answer #1

The correct answer is option of future value of a lump sum since only a single amount is invested and not a series of amounts are invested

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