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You want to deposit $15,000 in a bank at an interest rate of 7 percent per year. What is the future value of this money after three years?

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  1. 5 June, 23:06
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    The future value formula:

    FV = PV · (1 + i) ^ n

    PV - present value (PV = $15,0000),

    i - interest rate (i = 0.07),

    n - number of periods (n = 3)

    FV = $15,000 · 1.07 ³ = $15,000 · 1.225043 = $18,375.645
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