Question
Determine the future value of the following single amounts (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1).
i n
a. 13,000 5 % 18
b. 18,000 8 % 14
c. 31,000 8% 12
d. 52,000 6% 9
Answer:
Future Value
a = 31,286.05
b. = 52,869.48
c = 78,063.27
d. = 87,852.90
Explanation:
The future of a single sum can be determined as follows:
FV = PV × (1+r)^n
FV- Future value , PV - Present Value , r- rate of return per period , number of period
Future Value
a 13,000× (1.05)^18 = 31,286.05
b. 18,000× (1.08)^14 = 52,869.48
c 31,000 × 1.08^ 12 = 78,063.27
d. 52,000 × 1.06^9 = 87,852.90
