5- What is FV of an investment of 500,000 CFA in three years from now with a return rate of 12 percent knowing that...

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Question

business finance

Answer 1

Answer #1

Investment = 500,000 CFA

Return = 12%

Duration = 3 Years

Future Value = FV

Present Value = PV

FV = PV * (1+i)^n

Knowing that assets pays twice a year so

Interest (i) would be considered = 12/2 = 6

Period (n) would be considered = 3*2 = 6

FV = 500,000 * (1+.06)^6

FV = 709,259.6

Hope this helps, feel free to let me know in case of any other questions and share your feedback.

Answer 2

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