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For each of the following, compute the future value (Enter rounded answers as directed, but do
not use rounded numbers in intermediate calculations. Round your answers to 2 decimal places
(e.g., 32.16)):
Solution
Statement showing computations Case Presen Value Future Value at end of Year 4
Working Notes 1.00 2,700.00 9,165.33
2700*1.13*1.13*1.13*1.13*1.13*1.13*1.13*1.13*1.13*1.13 2.00
9,353.00 44,338.18
9353*1.07*1.07*1.07*1.07*1.07*1.07*1.07*1.07*1.07*1.07*1.07*1.07*1.07*1.07*1.07*1.07*
1.07*1.07*1.07*1.07*1.07*1.07*1.07 3.00 98,305.00
264,713.03
98305*1.06*1.06*1.06*1.06*1.06*1.06*1.06*1.06*1.06*1.06*1.06*1.06*1.06*1.06*1.06*1.06
*1.06 4.00 236,382.00 800,473.35
236382*1.05*1.05*1.05*1.05*1.05*1.05*1.05*1.05*1.05*1.05*1.05*1.05*1.05*1.05*1.05*1.0
5*1.05*1.05*1.05*1.05*1.05*1.05*1.05*1.05*1.05

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For each of the following, compute the future value (Enter rounded an.pdf

  • 1. For each of the following, compute the future value (Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16)): Solution Statement showing computations Case Presen Value Future Value at end of Year 4 Working Notes 1.00 2,700.00 9,165.33 2700*1.13*1.13*1.13*1.13*1.13*1.13*1.13*1.13*1.13*1.13 2.00 9,353.00 44,338.18 9353*1.07*1.07*1.07*1.07*1.07*1.07*1.07*1.07*1.07*1.07*1.07*1.07*1.07*1.07*1.07*1.07* 1.07*1.07*1.07*1.07*1.07*1.07*1.07 3.00 98,305.00 264,713.03 98305*1.06*1.06*1.06*1.06*1.06*1.06*1.06*1.06*1.06*1.06*1.06*1.06*1.06*1.06*1.06*1.06 *1.06 4.00 236,382.00 800,473.35 236382*1.05*1.05*1.05*1.05*1.05*1.05*1.05*1.05*1.05*1.05*1.05*1.05*1.05*1.05*1.05*1.0 5*1.05*1.05*1.05*1.05*1.05*1.05*1.05*1.05*1.05