What is the future value of $2,000 in three years if you deposit it today in...

Question

Question

What is the future value of $2,000 in three years if you deposit it today in an account earning 4% per year?

Answer 1

Answer #1

We will use the Excel function FV to determine the Future Value :-

Present Value 2 2,000.00 3 Years 3 Rate of Interest 4% 4 5 $2,249.73 Future Value

Present Value 2000 2 Years 3 Rate of Interest 0.04 4 Future Value =FV(C4,C3,0,-C2) 3. 5.

Hence, Future Value = $2,249.73

Answer 2

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