Question

Problem 5-2 Calculating Future Values [LO1]

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
	$	2,150		11		13	%		$
		8,552		7		9
		74,355		14		12
		181,796		8		6

Answer 1

	FV =	Future Value
	PV =	Present Value
	r =	rate of interest
	n=	no of period
a)	FV =	PV (1 + r )n
	FV =	2150*(1+13%)^11
	FV =	8247.10
b)	FV =	PV (1 + r )n
	FV =	8552*(1+9%)^7
	FV =	15633.39
c)	FV =	PV (1 + r )n
	FV =	74355*(1+12%)^14
	FV =	363381.23
d)	FV =	PV (1 + r )n
	FV =	181796*(1+6%)^8
	FV =	289755.20