Eh Kaw owns The Donut Hole, currently valued at $115,000. Determine the value of the business in 2 years if...
9. Eh Kaw owns The Donut Hole, currently valued at $115,000. Determine the value of the business in 2 years if Eh Kaw predicts 12% growth.
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info@snapandsolve.comTo determine the future value of the business, we use the formula for compound interest: Future Value = Present Value * (1 + growth rate)^number of years.
Here, the Present Value is $115,000, the growth rate is 12% (or 0.12), and the number of years is 2.
Future Value = $115,000 * (1 + 0.12)^2 = $115,000 * 1.2544 = $144,256.00
The value of the business in 2 years is $144,256.00.
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