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Terri Chichester
AC 30003
Professor Day
Unit 8, project
PM1 Future value of an investment
1.
What is the future value on December 31, 2014 of a deposit of $35,000 made on
December 31, 2010, assuming interest of 10% compounded annually?
FV
= $35,000(1.464100) = $51,243.50
2.
What is the future value on December 31, 2014 of a deposit of $10,000 made on
December 31, 2010, assuming interest of 16% compounded quarterly?
FV = $10,000(1.872981) =$18,729.81
3.
What is the future value on December 31, 2014 of a deposit of $25,000 made on
December 31, 2010, assuming interest of 12% compounded semiannually?
FV = $25,000(1.593848) = $39,846.20
PM3 Future value issues
1.
What is the future value on December 31 2019 of 10 cash flows of $20,000 with the
first cash payment made on December 31, 2010 and interest at 10% being
compounded annually?
FV = $20,000(15.937425) = $318748.50
2.
What is the future value on June 30, 2020 of 20 cash flows of $15,000 with the first
cash payment made on December 31, 2010 and the annual interest rate of 10%
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 Winter '10
 Day

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