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Question about future value of money

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If you invest $9,000 today, how much will you have:
a. In 2 years at 9 percent?
b. In 7 years at 12 percent?
c. In 25 years at 14 percent?
d. In 25 years at 14 percent (compounded semiannually)?

Your uncle offers you a choice of $30,000 in 50 years or $95 today. If money is discounted at 12 percent, which should you choose?

If you invest $2,000 a year in a retirement account, how much will you have:
a. In 5 years at 6 percent?
b. In 20 years at 10 percent?
c. In 40 years at 12 percent?

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Solution Summary

The solution explains to compute future value of money with different examples.

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Important formulae
F.V.= P.V (1+I)^n
Fv= future value
P.V.= present value, I= interest rate n= duration

If you invest $9,000 today, how much will you have:
a. In 2 years at 9 percent?
10692.9
b. In 7 years at 12 ...

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