What best describes the concept of future value?

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07-08-2024
Business

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What best describes the concept of future value?

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GinnyAnsweridn GinnyAnsweridn · Answer 1 · 2024-08-07T17:25:19-04:00

Final answer:

Future value is the value of an investment at a future time point, considering interest rates and risk.

Explanation:

Future value is a financial concept that calculates the value of an investment at a future point in time, considering factors like interest rates and risk. It represents the amount that an investment made today will grow to in the future. The process involves discounting future cash flows back to the present to determine their current worth.

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