Thursday, 11 September 2014

For each of the following, compute the future value (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)): Present Value Years Interest Rate Future Value $ 2,500 12 12 % $ 9,252 6 10 81,355 13 11 188,796 7 7 Explanation: To find the FV of a lump sum, we use: FV = PV(1 + r)t FV = $2,500(1.12)12 = $ 9,739.94 FV = $9,252(1.10)6 = $ 16,390.48 FV = $81,355(1.11)13 = $ 315,924.26 FV = $188,796(1.07)7 = $ 303,165.12 Calculator Solution: Note: Intermediate answers are shown below as rounded, but the full answer was used to complete the calculation. Enter 12 12% ±$2,500 N I/Y PV PMT FV Solve for $9,739.94 Enter 6 10% ±$9,252 N I/Y PV PMT FV Solve for $16,390.48 Enter 13 11% ±$81,355 N I/Y PV PMT FV Solve for $315,924.26 Enter 7 7% ±$188,796 N I/Y PV PMT FV Solve for $303,165.12

For each of the following, compute the future value (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)):

Present Value Years Interest Rate Future Value
$ 2,500 12      12 % $  
9,252 6      10  
81,355 13      11  
188,796 7      7  



Explanation: