Question

If you invest $8,100 per period for the following number of periods, how much would you have: Use Appendix C for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. In 8 years at 6 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)       Future value $         b. In 30 years at 12 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)        Future value $

Answer 1

a)

	Future value	P×[(1+r)^n-1]÷r
	Here,
1	Interest rate per annum	6.00%
2	Number of years	8
3	Number of payments per per annum	1
1÷3	Interest rate per period ( r)	6.00%
2×3	Number of periods (n)	8
	Payment per period (P)	$                                8,100
	Future value	$          80,169.49
		8100*((1+6%)^8-1)/6%

b)

	Future value	P×[(1+r)^n-1]÷r
	Here,
1	Interest rate per annum	12.00%
2	Number of years	30
3	Number of payments per per annum	1
1÷3	Interest rate per period ( r)	12.00%
2×3	Number of periods (n)	30
	Payment per period (P)	$                                        8,100
	Future value	$          1,954,794.74
		8100*((1+12%)^30-1)/12%