You are going to invest $500 at the end of each year for 10 years. Given an interest rate, you can find the future value of this investment by applying the proper future value factor to each cash flow, then adding up these future values.

Question

Quizplus · Accepted Answer

The future value of a series of investments or payments can be calculated by applying the future value factor for each individual payment or investment, based on the given interest rate, and then summing these future values. This method takes into account the compound interest earned over time on each payment.

You Are Going to Invest $500 at the End of Each