EXAMPLE
To calculate the future value of an investment, we can use the formula:
FV = PV * (1 + r)^n
Where:
FV = Future Value
PV = Present Value (initial investment)
r = annual interest rate
n = number of years
Given the user input:
PV = $1000
r = 5% or 0.05
n = 10 years
Plug the values into the formula:
FV = $1000 * (1 + 0.05)^10
FV = $1000 * (1.05)^10
FV = $1000 * 1.62889
FV = $1628.89
Therefore, the future value of the investment after 10 years would be $1628.89.