Question

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

  

Present Value				Years		Interest Rate			Future Value
	$	1,850		11		13	%		$
		7,952		7		9
		68,355		14		12
		175,796		8		6

Answer 1

CALCULATION OF FUTURE VALUE
Present Value(A)	Years	Interest Rate	Cumulative FVF (B)	Future Value (A X B)
$                 1,850	11	13%	3.8359	$                     7,096.34
$                 7,952	7	9%	1.8280	$                   14,536.57
$               68,355	14	12%	4.8871	$               3,34,058.56
$           1,75,796	8	6%	1.5938	$               2,80,192.12
Working Notes
Years	Interest Rate 13%	Interest Rate 9%	Interest Rate 12%	Interest Rate 6%
0	1.0000	1.0000	1.0000	1.0000
1	1.1300	1.0900	1.1200	1.0600
2	1.2769	1.1881	1.2544	1.1236
3	1.4429	1.2950	1.4049	1.1910
4	1.6305	1.4116	1.5735	1.2625
5	1.8424	1.5386	1.7623	1.3382
6	2.0820	1.6771	1.9738	1.4185
7	2.3526	1.8280	2.2107	1.5036
8	2.6584		2.4760	1.5938
9	3.0040		2.7731
10	3.3946		3.1058
11	3.8359		3.4785
12			3.8960
13			4.3635
14			4.8871