For each of the following, compute the future value (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)):

For each of the following, compute the future value (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)):

 

Present Value				Years		Interest Rate			Future Value
	$	2,050		12		12	%		$
		8,352		6		10
		72,355		13		11
		179,796		7		7

Explanation:

To find the FV of a lump sum, we use:

  

FV = PV(1 + r)t

 

FV = $2,050(1.12)12	=	$	7,986.75
FV = $8,352(1.10)6	=	$	14,796.08
FV = $72,355(1.11)13	=	$	280,974.74
FV = $179,796(1.07)7	=	$	288,713.09

Calculator Solution:

Note: Intermediate answers are shown below as rounded, but the full answer was used to complete the calculation.

Enter

12

12%

±$2,050

N

I/Y

PV

PMT

FV

Solve for

$7,986.75

Enter

6

10%

±$8,352

N

I/Y

PV

PMT

FV

Solve for

$14,796.08

Enter

13

11%

±$72,355

N

I/Y

PV

PMT

FV

Solve for

$280,974.74

Enter

7

7%

±$179,796

N

I/Y

PV

PMT

FV

Solve for

$288,713.09