Example 1: Future Value (FV) of a Present Single Sum  
Your client has $500,000 in an IRA and has asked you to estimate  
its value when the client reaches retirement age in 8 years, assuming  
a 6% return each year.

1)  
Future Value  = Amount(1+i)^N 
=500000(1+0.06)^8  
=796924.04  
2)  
Future Value  = Amount(1+i)^N 
=500000(1.1*1.1*1.08*1.08*1.06*1.06*1.04*1.04)  
=857593.13  
3)  
Future Value of Annuity Due  ={Amount[(1+i)^N1](1+i)}/i 
={12000[(1.06)^201](1.06)}/0.06  
=467912.72  
4)  
Future Value of Ordinary Annuity  =Amount[(1+i)^N1]/i 
=1000[(1.06)^201]/0.06  
=36785.59  
5)  
Future Value of accumulated sum  = Amount(1+i)^N 
=200000(1+0.06)^20  
=641427.09  
Future Value of Ordinary Annuity  =Amount[(1+i)^N1]/i 
=1000[(1.06)^201]/0.06  
=36785.59  
Future Value of total value invested  =641427.09+36785.59 
=678212.68 
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