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Exercise

Growth and rate of return

Growth and Rate of Return are two concepts that are ubiquitous throughout the financial world. Recall that the cumulative returns from investing $100 in an asset that grows at 5% per year, over a 2 year period can be calculated as:

$$100*(1 + 0.05)^2$$

Instructions
100 XP
  • Calculate the future value (cumulative return) of a $100 investment which grows at a rate of 6% per year for 30 years in a row and assign it to future_value.