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the value of Sheila's deposit next year is the future value of money
3 years ago
And the value of Sheila's deposit next year is the future value of money.What connects one to the other?The interest rate,also known as the time value of money.Now, with a little bit of rearranging,we can figure out the future value of Sheila's money with this equation.So in a year, the future value will be $11,000.Well, it's been a year! And there's Sheila, with enough money to buy the car.
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