Explore BrainMass
Share

Explore BrainMass

    Calculating the Present and Future Value

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    1. How much will you have at the end of 22 years if put $8680 per year at the end of each year into a saving account earning 1.6% annually?

    2. How much do you need to invest today to have $89,000 at the end of 19 years if you can earn 6.5% annually?

    © BrainMass Inc. brainmass.com October 10, 2019, 7:40 am ad1c9bdddf
    https://brainmass.com/business/finance/calculating-the-present-and-future-value-590673

    Solution Preview

    1.
    Annual deposit=R=$8680
    Number of periods=n=22
    Interest ...

    Solution Summary

    This response looks at two problems. Solution to first problem depicts the steps to calculate the FV of an ordinary annuity. Solution to second problem calculates the PV of given cash flow.

    $2.19