Why don't you leave the money deposited for another year?
1 year ago
But Timmy, that is still not enough to buy that fancy car.Why don't you leave the money deposited for another year?Let's see how your deposit will be doing in two years.With a little bit of rearranging,it becomes the value of your money next year,times one plus the interest rate.We can then convert the future value one year from now to the present value times one plus the interest rate.We can even simplify this further by just squaring the value of one plus the interest rate.
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