Business Finance
Chapter 5 Opportunity Costs and the Time Value of Money
5.2 The Future Value of a Single Amount
The Future Value of a Single Amount - Business Finance - ثاني ثانوي
PART 1
Chapter 1 An Introduction to Basic Finance
Chapter 2 The Role of Financial Markets and Financial Intermediaries
Chapter 3 Analysis of Financial Statements
PART 2
Chapter 4 An Introduction to Financial Markets
Chapter 5 Opportunity Costs and the Time Value of Money
Chapter 6 Risk and Its Measurements
Chapter 7 Stock and Bonds
Key Terms Future value Compounding
Future value
EXAMPLE If you deposit SAR 1,000 in a 5% account at age 40, how much will you get at age 65? (invested for 25 years)
Compounding
Why is it a benefit to let your savings compound?
What is the future value of SAR 100 at 10% after three years?
Noor invests SAR 700 at 4% for seven years. What would the future value be?
Sara invests SAR 1,000 in a 6% account for five years. What amount does she receive after five years?
Ali starts two investment accounts, both with SAR 1,000. The first is a 5% account and the second is a 6% account. What is the difference between the account balances after five years?
Which of the following are needed to calculate the future value of an investment?
What amount will be in an investment account after five years of earning 3% if the starting balance is SAR 100?
