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Calculating interest factor and future value

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Single sum - Rate - Time - Compounding frequency - interest factor - future value
$1,000 12% 2yrs annual
$1,000 12% 2yrs semiannual
$1,000 12% 2yrs quarterly
$1,000 12% 2yrs monthly

How to get the interest factor and future value?

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Solution Summary

The solution depicts the steps to calculate interest factor and future value in the given cases.

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1. Present Value=PV=$1000

Number of periods=n=2 years
Interest rate per period=r=12% per annum
FV factor=FVF=(1+r)^n= (1+12%)^2=1.2544

Future Value=PV*FVF=1000*1.2544=1254.40

2. ...

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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