Future value of an investment Using the future value tables solve the following:
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% compound annually?
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?
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% compound semiannually?
1.
f
= p
(
29
i
n,
f
f
= $35,000
(
29
10%
i
,
n
f
=
=
4
f
= $35,000 (1.464100)
f
= $51,243.50
2.
f
= p
(
29
i
n,
f
f
= $10,000
(
29
4%
i
16,
n
f
=
=
f
= $10,000 (1.872981)
f
= $18,729.81
3.
f
= p
(
29
i
n,
f
f
= $25,000
(
29
6%
i
,
n
f
=
=
8
f
= $25,000 (1.593848)
f
= $39,846.20
Future Value Issues Using the future values tables , solve the following:
1. What is the future value on December 31, 2019 of 10 cash flows of $20,000 with