moving money forward over multiple years

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moving money forward over multiple years

it is future value that moves money forward across four time periods .moving money forward uses aprocess called compounding,which require multiplication. moving a lump sum money forward one year in time, FV1= C0 * (1+r). R= return (used as a decimal) c0=amount of the money today fv1=the value of the money in one year. you are approached by afriend who want to borrow $ 10000 to start a business your friend promises to repay you in four year - the whole amoun plus 10% intrest compounded annualy . in this case we need to able to calculatea future value in four years. so here are hint- fv1= c0* (1+r) =$10000*1.10 fv2=fv1*110=$10000*1.102 follw like these.


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