Finance School of Management Example: Future Value of a Lump sum Your bank offers a cd F=P*(1+i)” Certificate of Deposit $1500*(1+0.03) with an interest rate of 3% for a 5 year =$1738.1111145 investments n You wish to invest $1, 500 for 5 years, how PV 1500 much Will your FV investment be worth? Result1738911111 uesTc 1010 Finance School of Management Example: Future Value of a Lump Sum ❖ Your bank offers a CD (Certificate of Deposit) with an interest rate of 3% for a 5 year investments. ❖ You wish to invest $1,500 for 5 years, how much will your investment be worth? $1738 .1111145 $1500 * (1 0.03) * (1 ) 5 = = + = + n FV PV i n 5 i 3% PV 1,500 FV ? Result 1738.911111