Future value calculations and tables
Not what you're looking for?
A, Future value calculation
Without referring to tables or to the preprogrammed function on your financial calculator, use the basic formula for future value along with the given interest rate, i, and the number of periods, n, to calculate the future value interest factor in each of the cases shown in the following table.
case Interest rate,i Number of periods, n
A 12% 2
B 6 3
C 9 2
D 3 4
b, Future value tables
Use the future value interest factors in Appendix Table A-1
in each of the cases shown in the table on the facing page to estimate, to the nearest
year, how long it would take an initial deposit, assuming no withdrawals,
a. To double.
b. To quadruple.
Case Interest rate
A 7%
B 40
C 20
D 10
Purchase this Solution
Solution Summary
This solution is comprised of a detailed explanation to calculate the future value interest factor in each of the cases shown in the following table.
Solution Preview
Future value calculations and tables
a, Future value calculation
Without referring to tables or to the preprogrammed
function on your financial calculator, use the basic formula for future value along with the given interest rate, i, and the number of periods, n, to calculate the future value interest factor in each of the cases shown in the following table.
case Interest rate,i ...
Purchase this Solution
Free BrainMass Quizzes
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.