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Present value of money is 2500, which is invested at 10% and time of investment is 2 years. Calculate the future value.
Solution
The solution is explained below −
Future value = to be calculated
Present value =Rs. 2500/-
Interest rate = 10%
Time = 2 years
Fv = Pv * [1 + (i/n)] ^ (n*t)
Fv = 2500 *[1+ (10%/1)] ^ (1*2)
Fv = 2500 * [1 + 0.1] ^2
Fv = 2500 * [1.1] ^2
Fv = 2500 * 1.21
Fv = 3025/-
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