Question

Calculate the future value in six years of $9,000 received today if your investments pay (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))

		Future Value
a.	6 percent compounded annually	$
b.	8 percent compounded annually
c.	10 percent compounded annually
d.	10 percent compounded semiannually
e.	10 percent compounded quarterly

Answer 1

Answer = A)
Years	Payment (A)	Interest @ 6%	Cumulative Balance
1	$                 9,000	$                540.00	$           9,540.00
2		$                572.40	$         10,112.40
3		$                606.74	$         10,719.14
4		$                643.15	$         11,362.29
5		$                681.74	$         12,044.03
6		$                722.64	$         12,766.67
	Answer =	$          12,766.67
Answer = B)
Years	Payment (A)	Interest @ 8%	Cumulative Balance
1	$                 9,000	$                720.00	$           9,720.00
2		$                777.60	$         10,497.60
3		$                839.81	$         11,337.41
4		$                906.99	$         12,244.40
5		$                979.55	$         13,223.95
6		$            1,057.92	$         14,281.87
	Answer =	$          14,281.87
Answer = C)
Years	Payment (A)	Interest @ 10%	Cumulative Balance
1	$                 9,000	$                900.00	$           9,900.00
2		$                990.00	$         10,890.00
3		$            1,089.00	$         11,979.00
4		$            1,197.90	$         13,176.90
5		$            1,317.69	$         14,494.59
6		$            1,449.46	$         15,944.05
	Answer =	$          15,944.05
Answer = D)
Periods	Payment (A)	Interest @ 5%	Cumulative Balance
1	$                 9,000	$                450.00	$           9,450.00
2		$                472.50	$           9,922.50
3		$                496.13	$         10,418.63
4		$                520.93	$         10,939.56
5		$                546.98	$         11,486.53
6		$                574.33	$         12,060.86
7		$                603.04	$         12,663.90
8		$                633.20	$         13,297.10
9		$                664.85	$         13,961.95
10		$                698.10	$         14,660.05
11		$                733.00	$         15,393.05
12		$                769.65	$         16,162.71
	Answer =	$          16,162.71
Answer = E)
Periods	Payment (A)	Interest @ 2.5%	Cumulative Balance
1	$                 9,000	$                225.00	$           9,225.00
2		$                230.63	$           9,455.63
3		$                236.39	$           9,692.02
4		$                242.30	$           9,934.32
5		$                248.36	$         10,182.67
6		$                254.57	$         10,437.24
7		$                260.93	$         10,698.17
8		$                267.45	$         10,965.63
9		$                274.14	$         11,239.77
10		$                280.99	$         11,520.76
11		$                288.02	$         11,808.78
12		$                295.22	$         12,104.00
13		$                302.60	$         12,406.60
14		$                310.16	$         12,716.76
15		$                317.92	$         13,034.68
16		$                325.87	$         13,360.55
17		$                334.01	$         13,694.56
18		$                342.36	$         14,036.93
19		$                350.92	$         14,387.85
20		$                359.70	$         14,747.55
21		$                368.69	$         15,116.24
22		$                377.91	$         15,494.14
23		$                387.35	$         15,881.50
24		$                397.04	$         16,278.53
	Answer =	$          16,278.53