Concept
Version 11
Created by Boundless
Importance of the Time Value of Money
Compound Interest
In this formula, your deposit ($100) is PV, i is the interest rate (5% for Bank 1, 6% for Bank 2), t is time (5 years), and FV is the future value.
Source
Boundless vets and curates high-quality, openly licensed content from around the Internet. This particular resource used the following sources: