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5. Explain the difference between Future Value of a Single Deposit Investment and Future Value of a

Periodic Deposit Investment (1-2 sentences). (2 Points) C
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User Novus
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Final answer:

The Future Value of a Single Deposit Investment is the value of a single deposit or investment at a specific point in the future, while the Future Value of a Periodic Deposit Investment is the value of a series of periodic deposits or investments at a specific point in the future.


Step-by-step explanation:

The Future Value of a Single Deposit Investment is the value of a single deposit or investment at a specific point in the future, considering the interest earned or compounded over time. It is calculated using the formula: FV = P * (1 + r)^n, where FV is the future value, P is the principal amount, r is the interest rate, and n is the number of periods.

The Future Value of a Periodic Deposit Investment is the value of a series of periodic deposits or investments at a specific point in the future, considering the interest earned or compounded over time. It is calculated using the formula: FV = P * [(1 + r)^n - 1] / r, where FV is the future value, P is the periodic deposit amount, r is the interest rate, and n is the number of periods.


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