Question

For each of the following, compute the future value: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
  

Present Value				Years			Interest Rate				Future Value
	$	2,900			6			19	%			$
		8,953			19			7
		94,305			13			12
		232,382			29			4

Answer 1

Future value=Present value*(1+interest rate)^Number of years

Part 1:
When present value=$2900, number of years=6, interest rate=19%
Future value=2900*(1+19%)^6
=2900*(1.19)^6
=2900*2.839760855
=8235.30648 or $8235.31 (Rounded to two decimal places)

Part 2:
When present value=$8953, number of years=19, interest rate=7%
Future value=8953*(1+7%)^19
=8953*(1.07)^19
=8953*3.616527535
=32378.77102 or $32378.77 (Rounded to two decimal places)

Part 3:
When present value=$94305, number of years=13, interest rate=12%
Future value=94305*(1+12%)^13
=94305*(1.12)^13
=94305*4.363493112
=411499.2179 or $411499.22 (Rounded to two decimal places)

Part 4:
When present value=$232382, number of years=29, interest rate=4%
Future value=232382*(1+4%)^29
=232382*(1.04)^29
=232382*3.118651452
=724718.4617 or $724718.46 (Rounded to two decimal places)