Asked by Dinero Hughes on Jul 04, 2024
Verified
The "future value" of a sum of money refers to
A) the estimated value of that money invested in a stock portfolio at some future date.
B) the purchasing power of a given amount of money adjusted for price changes.
C) today's value of a sum of money to be received in the future.
D) the amount to which some current sum of money will grow over time.
Future Value
The value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today, considering interest or capital gains.
Purchasing Power
The amount of goods or services that one unit of money can buy, reflecting the economic value of currency.
- Determine the future worth of investments through the application of assorted interest rates and time frames.
Verified Answer
BM
Blake MooreJul 07, 2024
Final Answer :
D
Explanation :
The "future value" of a sum of money refers to the amount to which a current sum of money will grow over a period of time, given a certain interest rate or rate of return. This concept is fundamental in finance, particularly in the contexts of savings, investments, and interest calculations.
Learning Objectives
- Determine the future worth of investments through the application of assorted interest rates and time frames.