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Higher the future value intererst factor

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Stephanie Spratt hopes to invest $4,000 at the end of the year. If her inverstments appreciate by 6% annually, the value of her investment will be $7,3163 in 10 years. If she earns an annual return of 10%, the value of those investsments will be $10,375 on 10 years. The higher the rate of return, the higher the future value intererst factor (FVIF), and the larger the amount of fundsthat she will accumulate. Could you explain this to me?

Reference no: EM132774763

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