Compute the future value of $1,000 compounded annually for 10 years at 6 percent

Question

Compute the future value of $1,000 compounded annually for 10 years at 6 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Compute the future value of $1,000 compounded annually for 10 years at 9 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Compute the future value of $1,000 compounded annually for 15 years at 6 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Compute the future value of $1,000 compounded annually for 10 years at 6 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Explanation / Answer

Part A

We have:

PV= 1000

N = 10

R= 6%

We have following formula for FV:

FV= PV x (1+r)^n

    = 1000 x (1+0.06)^10

    = 1000 x 1.790848

    = 1790.85

Part B

We have:

PV= 1000

N = 10

R= 9%

We have following formula for FV:

FV= PV x (1+r)^n

    = 1000 x (1+0.09)^10

    = 1000 x 2.3673637

    = 2367.36

Part C

We have:

PV= 1000

N = 15

R= 6%

We have following formula for FV:

FV= PV x (1+r)^n

    = 1000 x (1+0.06)^15

    = 1000 x 2.3965581

    = 2396.56

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.