Question

Your father has invested $200 today in a savings account. The total value of his investment one year from now is referred to as ____________________________.

Answer 1

Future value

Step-by-step explanation:

Future value is the value an asset will be worth at a particular date. Future value helps to measure the future worth of a sum of money at a specified time and at a particular interest rate.

Future value is calculated as

FV = PV (1+r)^n

Where PV is present value.

T =Time in years

n is the number of period

r is interest rate.

FV is future value