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
| ||||||||||||||
