Compute the future value of $1,000 at a 6 percent interest rate after three different lengths of time. Use 6, 10 and 20 years into the future.
What will be an ideal response?
We can use a calculator and the formula FV = PV(1 + i)n to solve this problem. To calculate the future value for six years the formula will be: FV = $1,000(1.06)6 which equals $1,418.52. Using a similar approach for 10 years: FV = $1,000(1.06)10 which equals $1790.85. And finally for 20 years: FV = $1,000(1.06)20 which equals $3207.14.
You might also like to view...
Should the level of pollution be reduced to zero and if not, then to what level?
What will be an ideal response?
If market demand increases and market supply decreases, then equilibrium quantity will (be) ____ and equilibrium price will (be) ____
a. indeterminate; decrease b. indeterminate; increase c. decrease; decrease d. increase; increase
Horizontal equity refers to a tax system in which individuals with similar incomes pay similar taxes
a. True b. False Indicate whether the statement is true or false
What type of business is the easiest to set up?
A) sole proprietorship B) partnership C) corporation D) There is no difference in the ease of establishment.