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Calculate Future Value, Present Value Sample Solution

Calculate the future value of $150,000 fifteen year from today based on the following interest:

a. 3%
b. 6%
c. 9%
d. 12%

Calculate the present value of $35,000. 20 years from today based on the following annual discount rates:

a. 3%
b. 6%
c. 9%
d, 12%

Solution Preview

1. FV = PV * (1+r)^t
where "^" means "to the power of"
When r = 3%, FV = 150,000 * (1+3%)^15 = 233,695.11
When r = 6%, FV ...

Solution Summary

This solution calculates the future value of $150,000 based on a variety of interest rates and the present value of $35,000 based on a number of annual discount rates.

$2.19