Question

Calculate the future value of the following amounts deposited today if they have an annual compound...

Calculate the future value of the following amounts deposited today if they have an annual compound interest as shown below:

Situation Amount deposited Interest rate Periods of deposited ( pear years) Frequency
A $10,200 4.5% 12 Bimonthly
B $14,500 6.4% 8 Semiannual
C $10,000 8.3% 7 Quarterly
D $25,000 11.8% 9 Annual
E $26,000 10.7% 20 Quarterly
F $32,000 9.4% 14 Semiannual

Homework Answers

Answer #1
Deposit Rate Period Frequency FV
A 10,200 4.50% 12 6         17,468
B 14,500 6.40% 8 2         24,002
C 10,000 8.30% 7 4         17,772
D 25,000 11.80% 9 1         68,221
E 26,000 10.70% 20 4       214,857
F 32,000 9.40% 14 2       115,786

FV = PV x (1 + r/m)^(n x m)

where, PV - Deposit, r - rate, m - frequency, n - period.

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