Answered: If you deposit $1000 in one year, $2000…

If you deposit $1000 in one year, $2000 in two years, and $3000 in three years, how much will you have in three years? Assume a 7 percent annum interest rate.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 1QTD

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4. If you deposit $1000 in one year, $2000 in two years, and $3000 in three
years, how much will you have in three years? Assume a 7 percent annum interest
rate.

Expert Solution

Concept:

Future value (FV) is the value of an investment or cash flow at a specific point in the future, based on a specified interest rate or rate of return. It represents the total amount of money that an investment will grow to over time, assuming that all cash flows are reinvested at the same rate of return.

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Hi can you show how to input in excel using the fv formula and npv if is necessary thank you so much!

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