Answer to Question #161176 in Algebra for Hekl

Question

1-CREATE a real-life future value OR present value scenario that you are likely to PERSONALLY encounter in the future 2-where can we see future value and present value in real life. 

Answer 1

If I invest $1,000 for five years with an interest rate of 10%. The future value would be $1,610. 51

$FV=PV(1+r)^{n}$

FV = future value

PV = present value

r = annual interest rate

{n} = number of periods interest held

$FV=1,000(1+0.1)^{5}$

$FV=1000×1.6105$ =$$1,610.5$

Helps one to discover answers for financial queries like determining the payment on a mortgage, or how much interest is being charged on that short-term Christmas expenses loan.