Question

Do you think FV is important to managers? Why or why not?

Do you think FV is important to managers? Why or why not?

Homework Answers

Answer #1

YES, I do think that future value is important for the fund managers because they are trying to maximize their rate of return in the long run by using a compounding concept and future value always try to provide maximization of return by compounding of the values in the long run so future value should be the important core of investment in the financial world and hence I think that investment managers as well as other mutual fund managers should always be properly acquainted with the feature value in order to maximize their rate of return because it will provide them with an idea to invest their money in different funds which can provide them additional edge in maximizing rate of return over a long period so future value will be of utmost importance as it will advocate for maximization of the rate of return in the longer period by effect of compounding.

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