Where: FV = future value PV = present value = $500 r = interest rate = 8% = 0.08 n = number of years = 3
These exercises demonstrate the application of various investment concepts and techniques, including present value, future value, return on investment, and portfolio management. By understanding these concepts, investors can make informed decisions and achieve their financial goals. Ushtrime Te Zgjidhura Investime
Year 1: $100 Year 2: $120 Year 3: $150
Using the future value formula:
FV = PV x (1 + r)^n
Where: PV = present value FV = future value = $1,000 r = discount rate = 10% = 0.10 n = number of years = 5 Where: FV = future value PV = present
PV = FV / (1 + r)^n