Question

2. Calculate the future value of the following cash flows

If you invest $10,000 today at 4% how much money will you have in five years?   ________

If you invest $10,000 today at 4% how much money will you have in ten years?   ________

If you invest $10,000 today at 8% how much money will you have in five years?   ________

If you invest $10,000 today at 8% how much money will you have in ten years?   ________

If you invest $10,000 on the first of every year for five years at 4% how much money will you have in five years?        ________

If you invest $10,000 on the last day of each year for five years at 4% how much money will you have in five years?        ________

If you invest $10,000 on the first of every year for ten years at 8% how much money will you have in ten years?        ________

If you invest $10,000 on the last day of each year for ten years at 8% how much money will you have in ten years?        ________

If you invest $70,000, $60,000, $50,000, $40,000, and $30,000 on the first day of the every year for five years how much money will you have in five years if the interest rate is 8%?    ________

If you invest $30,000, $40,000, $50,000, $60,000, and $70,000 on the first day of every year for five years how much money will you have in five years if the interest rate is 8%?      ________

Answer 1

a	10000 x (1+4%)^5 =		12166.53
b	10000 x (1+4%)^10 =		14802.44
c	10000 x (1+8%)^5 =		14693.28
d	10000 x (1+4%)^10 =		14802.44
e	Year end	Amount deposited	Compounding factor		Amount x compounding factor
	0	10000	(1+4%)^5=	1.216653	12166.53
	1	10000	(1+4%)^4=	1.169859	11698.59
	2	10000	(1+4%)^3=	1.124864	11248.64
	3	10000	(1+4%)^2=	1.0816	10816
	4	10000	(1+4%)^1=	1.04	10400
				FV =	56329.75
f.	Year end	Amount deposited	Compounding factor		Amount x compounding factor
	1	10000	(1+4%)^4=	1.169859	11698.59
	2	10000	(1+4%)^3=	1.124864	11248.64
	3	10000	(1+4%)^2=	1.0816	10816
	4	10000	(1+4%)^1=	1.04	10400
	5	10000	(1+4%)^0=	1	10000
				FV =	54163.23
g	Year end	Amount deposited	Compounding factor		Amount x compounding factor
	0	10000	(1+8%)^5=	1.469328	14693.28
	1	10000	(1+8%)^4=	1.360489	13604.89
	2	10000	(1+8%)^3=	1.259712	12597.12
	3	10000	(1+8%)^2=	1.1664	11664
	4	10000	(1+8%)^1=	1.08	10800
				FV =	63359.29
h	Year end	Amount deposited	Compounding factor		Amount x compounding factor
	1	10000	(1+8%)^4=	1.360489	13604.89
	2	10000	(1+8%)^3=	1.259712	12597.12
	3	10000	(1+8%)^2=	1.1664	11664
	4	10000	(1+8%)^1=	1.08	10800
	5	10000	(1+8%)^0=	1	10000
				FV =	58666.01
i	Year end	Amount deposited	Compounding factor		Amount x compounding factor
	0	70000	(1+8%)^5=	1.469328	102853
	1	60000	(1+8%)^4=	1.360489	81629.34
	2	50000	(1+8%)^3=	1.259712	62985.6
	3	40000	(1+8%)^2=	1.1664	46656
	4	30000	(1+8%)^1=	1.08	32400
				FV =	326523.9
j	Year end	Amount deposited	Compounding factor		Amount x compounding factor
	0	30000	(1+8%)^5=	1.469328	44079.84
	1	40000	(1+8%)^4=	1.360489	54419.56
	2	50000	(1+8%)^3=	1.259712	62985.6
	3	60000	(1+8%)^2=	1.1664	69984
	4	70000	(1+8%)^1=	1.08	75600
				FV =	307069