Find the future value for each of the following scenarios, where
m is the periodic deposit and r is the interest
rate.
| compounding | time | future | interest | ||
|---|---|---|---|---|---|
| m | r | frequency | in years | value | earned |
| $350 | 5% | annually | 14 | $ | $ |
| $450 | 5.2% | semiannually | 15 | $ | $ |
| $350 | 4.3% | quarterly | 8 | $ | $ |
| $175 | 4.6% | monthly | 11 | $ | $ |
| $400 | 5.1% | weekly | 13 | $ | $ |
| FV = | Future Value | |
| PV = | Present Value | |
| r = | rate of interest | |
| n= | no of period | |
| a) | FV = | PV (1 + r )^n |
| FV = | 350*(1+5%)^14 | |
| FV = | 692.98 | |
| b) | FV = | PV (1 + r )^n |
| FV = | 450*(1+5.2%/2)^30 | |
| FV = | 971.93 | |
| c) | FV = | PV (1 + r )^n |
| FV = | 350*(1+4.3%)^32 | |
| FV = | 1346.37 | |
| d) | FV = | PV (1 + r )^n |
| FV = | 175*(1+4.6%/12)^132 | |
| FV = | 289.98 | |
| e) | FV = | PV (1 + r )^n |
| FV = | 400*(1+5.1%/52)^676 | |
| FV = | 775.99 |
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