Future Value of an Investment

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Presentation transcript:

Future Value of an Investment example 6 Future Value of an Investment The future value of $10,000 invested for 4 years at interest rate r compounded annually is given by Find the rate r, as a percent, for which the future value is $14,641. Chapter 6.3 2009 PBLPathways

The future value of $10,000 invested for 4 years at interest rate r compounded annually is given by Find the rate r, as a percent, for which the future value is $14,641.

The future value of $10,000 invested for 4 years at interest rate r compounded annually is given by Find the rate r, as a percent, for which the future value is $14,641.

The future value of $10,000 invested for 4 years at interest rate r compounded annually is given by Find the rate r, as a percent, for which the future value is $14,641. Initial value

The future value of $10,000 invested for 4 years at interest rate r compounded annually is given by Find the rate r, as a percent, for which the future value is $14,641. Compounding factor

The future value of $10,000 invested for 4 years at interest rate r compounded annually is given by Find the rate r, as a percent, for which the future value is $14,641.

The future value of $10,000 invested for 4 years at interest rate r compounded annually is given by Find the rate r, as a percent, for which the future value is $14,641.

The future value of $10,000 invested for 4 years at interest rate r compounded annually is given by Find the rate r, as a percent, for which the future value is $14,641.

The future value of $10,000 invested for 4 years at interest rate r compounded annually is given by Find the rate r, as a percent, for which the future value is $14,641.

The future value of $10,000 invested for 4 years at interest rate r compounded annually is given by Find the rate r, as a percent, for which the future value is $14,641.

The future value of $10,000 invested for 4 years at interest rate r compounded annually is given by Find the rate r, as a percent, for which the future value is $14,641.

The future value of $10,000 invested for 4 years at interest rate r compounded annually is given by Find the rate r, as a percent, for which the future value is $14,641.

The future value of $10,000 invested for 4 years at interest rate r compounded annually is given by Find the rate r, as a percent, for which the future value is $14,641.

The future value of $10,000 invested for 4 years at interest rate r compounded annually is given by Find the rate r, as a percent, for which the future value is $14,641.

The future value of $10,000 invested for 4 years at interest rate r compounded annually is given by Find the rate r, as a percent, for which the future value is $14,641. r S

The future value of $10,000 invested for 4 years at interest rate r compounded annually is given by Find the rate r, as a percent, for which the future value is $14,641. S (0.1, 14,641) r