Number of Annual Present Value Annuity Future Value Payments or Interest Rate Years 6. 10% $301.36 15 18% S1,317.67 28 3% S662.75 ? 300 1.2% $488.75 What is the future value?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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What is the future value?
Number of
Annual
Present Value
Annuity
Future Value
Payments or
Interest Rate
Years
6.
10%
$301.36
15
18%
S1,317.67
28
3%
S662.75
?
300
1.2%
$488.75
What is the future value?
Transcribed Image Text:Number of Annual Present Value Annuity Future Value Payments or Interest Rate Years 6. 10% $301.36 15 18% S1,317.67 28 3% S662.75 ? 300 1.2% $488.75 What is the future value?
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Future value is the value of the present cash flows after certain period. Due to interest that can be earned during the period, future value will be more than the present value of the cash flow. 

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