Answer to Question #70234 in Microeconomics for Ariba
earning compounding interest is:
FV = I * ((1 + R) ^ T)
Using the above example, the same $106 940 business value of KFC now. Account
with a 1.3% per year compounding interest rate would have a FV of $154,287
So, we can find a period:
$106 940 * ((1 + 0.013) ^ х) = $154 287
Х = 28,3788 years
More than 28 years is required for KFC business to reach at $154,287 worth.
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