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6 January, 21:27

Having $ 200$200 today is equivalent to having what amount in one year?

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  1. 6 January, 21:46
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    Suppose the interest rate is 4%, the equivalent of $200 in one year will be:

    A=P (1+r/100) ^n

    where:

    p=principle amount

    r=rate

    n=time

    Hence the amount in 1 year will be:

    A=200 (1+4/100) ^1

    A=$208

    Therefore $200 today is equivalent of $208 in 1 year.
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