Question

In this part, you need to examine the relation between the future value and the number...

In this part, you need to examine the relation between the future value and the number of periods.

For a present value of $5,000, create a table that shows the FV at 0%, 5%, and 10% for 0, 2, 4, 6, 8, and 10 years.

In a single graph (scatter plot with straight lines and markers), graph the table above with years on the horizontal axis and FV on the vertical axis for each interest rate and be sure to label the y-axis, x-axis, chart title, and legend. (7 Points)

Homework Answers

Answer #1

Table showing future value at different rates

Years Amount FV at 0% FV at 5% FV at 10%
0 5,000 5,000 5,000 5,000
2 5,000 5,000 5,512.5 6,050
4 5,000 5,000 6,077.53 7,320.5
6 5,000 5,000 6,700.49 8,857.81
8 5,000 5,000 7,387.28 10,717.94
10 5,000 5,000 8,144.47 12,968.71

All the value in the table are calculated using the formula: Fv= pv(1+r)^n

Graph is shown below

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