You are scheduled to receive $10,000 in 2 years. when you receive it, you will invest it for six more years at 7.5 percent per year.
Present value = Future value/(1+i)^n
i = interest rate per period
n= number of periods
Future value = 10000 * (1+7.5%)^6
= 15433.02
An example of investment is investing time in building relationships. An example of investing is buying a stock at a low price and later selling it at a higher price. An example of investment is starting a new business that invests time now to generate income later. To invest (money) in companies, real estate, stocks, bonds, etc.
Investing is an effective way to put money to good use and potentially build wealth. With smart investments, money can outperform inflation and increase in value. The huge growth potential of investment is largely due to the power of compound interest and the risk/return trade-off.
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