Question

1. At an annual interest rate of 10% how many years will it take for $300 to double in value? (show work)

2. I am getting paid $600 today. What is the future value of $600 in 15 years if current interest rates are 5%?
   
   
   
3. I will receive $24,000 in 12 years. What is the present value of the $24,000 if current interest rates are 6%?

I'm trying to learn the equations so if you could how you got your answers, that would be amazing. Doesn't have to be in words, numbers is fine.

Answer 1

FV = PV x (1 + r)ⁿ

1) FV = 600 = 300 x (1 + 10%)ⁿ

n (time taken) = 7.27 years

2) PV = 600

n = 15 years and r = 5%

FV = 600 x (1 + 5%)¹⁵

FV = $ 1247.36

3)

FV= 24000 , n = 12 and r = 6%

PV = 24000/(1 + 6%)¹² = $ 11927.26