Answered

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What best describes the concept of future value?

A. The amount of money required in the future
B. The original amount of an investment
C. The worth of an investment over time
D. The total cost of an item you plan to purchase in the future

Sagot :

GinnyAnswer

Final answer:

Future value in finance calculates the worth of an investment over time considering interest rates and inflation.


Explanation:

Future value refers to the worth of an investment over time. It considers what the value of an investment will be in the future by factoring in interest rates, return requirements, and inflation. The concept of future value is essential in finance theory as it helps in determining the potential growth of investments over time.


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