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Question 24.1: FUTURE VALUE CALCULATION What is the future value or a singl...

FUTURE VALUE CALCULATION

What is the future value or a single repayment requirement after 5 years for a USD 20,000 loan (such as a municipal bond) with a 3% annual interest rate?

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FV = P(1 + i)^{n}.
FV = 20,000(1 + 0.03)^{5} = USD 23,180.55.

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