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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?

    © BrainMass Inc. brainmass.com March 4, 2021, 11:24 pm ad1c9bdddf

    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.