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    Future Value

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    If you invest $12,000 today, how much will you have:
    a. In 6 years at 7 percent?
    b. In 15 years at 12 percent?
    c. In 25 years at 10 percent?
    d. In 25 years at 10 percent (compounded semiannually)?

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    Solution Preview

    FVIF= Future Value Interest Factor
    FVIF( n, r%)= =(1+r%)^n

    Principal= $12,000

    a. In 6 years at 7 percent?
    Compounding A Annual
    No of years= 6
    No of Periods= 6
    Discount rate annually= 7.00% annual
    Discount rate per period= 7.00%
    n= 6
    r= 7.00%
    FVIF (6 periods, 7.% rate=) 1.50073
    Amount=Principal*FVIF ...

    Solution Summary

    Future Value at different interest rates, number of years, compounding frequency are calculated.