# Calculating interest factor and future value

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?

© BrainMass Inc. brainmass.com October 10, 2019, 3:25 am ad1c9bdddfhttps://brainmass.com/economics/finance/calculating-interest-factor-future-value-419830

#### Solution Preview

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 Summary

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

$2.19