Your investment will yield a monthly return of 2.46 percent. In a year, your investment will be $1.02 per dollar.
Future value is the value of a present asset at some time in the future based on an anticipated rate of growth (FV). The future value is important to investors and financial planners because they use it to estimate how much an investment made now will be worth in the future.
According to the concept of present value, money is worth more now than it will be later. In other words, money earned now is worth less than money earned tomorrow for the same amount. A $1,000 present given today is more valuable than one given in five years.
FV = PV × [tex](1 + r)^N[/tex]
PV = 1
r = 2.46%
N = 1.00
FV = 1 × [tex](1 + 0.0246)^1[/tex]
FV = 1.02
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