Future Value and the Power of Compound Interest (cont.)
01.Core Concepts
• i = 5% • Year 1: Deposit $100 $105 • Year 2: $105(1 + 5%) = $110.25, or • FV = PV(1 + i) • FV = $1.05(1 + 0.05) • FV = $1.1025
Personal Financial Planning
8. CHAPTER 6: TIME VALUE OF MONEY/Future Value and the Power of Compound Interest (cont.)
Syllabus Slides