Question

if the present value of an investment is 5 000 what will be its future value in three years if you apply a compound interest of 5 percent to it?

Answer 1

THE FUTURE VALUE IN THREE YEARS WILL BE 5788.125.

Step-by-step explanation:

Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth in the future.

FORMULA

FV = I ×(1 + R)ⁿ

FV = 5000(1.05)³

FV= 5788.125

SO THE FUTURE VALUE IS 5788.125.