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:

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