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The process of finding the value in the future of an investment made today is called...

The process of finding the value in the future of an investment made today is called...

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Answer #1

The answer is “COMPOUNDING”

-The process of finding the value in the future of an investment made today is called Compounding.

-The value in the future of an investment made today is called as the Future Value

-It the aggregate value of an investment made today plus the interest generated on such investments.

-The future value is calculated by using the following formula;

Future Value = P x (1 + r)n

Where, P = The amount of Investment

r = Interest Rate per year

n = Number of period or years

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