Question

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.) Years Future Value Interest Rate 18 % Present Value 2,250 10,253 107,305 245,382 9 22 285

Answer 1

Case A:

Future Value = Present Value * (1 + Interest Rate)^Period
Future Value = $2,250 * 1.18^9
Future Value = $2,250 * 4.435454
Future Value = $9,979.77

Case B:

Future Value = Present Value * (1 + Interest Rate)^Period
Future Value = $10,253 * 1.06^22
Future Value = $10,253 * 3.603537
Future Value = $36,947.07

Case C:

Future Value = Present Value * (1 + Interest Rate)^Period
Future Value = $107,305 * 1.11^16
Future Value = $107,305 * 5.310894
Future Value = $569,885.52

Case D:

Future Value = Present Value * (1 + Interest Rate)^Period
Future Value = $245,382 * 1.05^28
Future Value = $245,382 * 3.920129
Future Value = $961,929.13