The future value formula is FV = PV× (1 + i) n.
The future value of $1,500 invested at a 5% rate for 7 years is $2,103.83.
Answer and Explanation: The future value of $800 at 8 percent after six years equals $1,269.50.
- At 7% compounded monthly, it will take approximately 11.6 years for $4,000 to grow to $9,000. - At 6% compounded quarterly, it will take approximately 13.6 years for $4,000 to grow to $9,000.
The future value of $1,000 after six months of earning 12% annually is $1,060.00.
The $100 investment becomes $161.05 after 5 years at 10% compound interest.
The total amount of $15,000 at 15% compounded annually for 5 years will be $30,170.36 so option (B) is correct.
FV = PV*(1+r)^n
Where: FV is the future value of the investment, including growth/interest. PV is the present value of the investment. r is the annual interest rate.
The table below shows the present value (PV) of $10,000 in 20 years for interest rates from 2% to 30%. As you will see, the future value of $10,000 over 20 years can range from $14,859.47 to $1,900,496.38.
Thus, the future value is $540.
Calculator Use
The future value formula is FV=PV(1+i)n, where the present value PV increases for each period into the future by a factor of 1 + i. The future value calculator uses multiple variables in the FV calculation: The present value sum. Number of time periods, typically years.
Answer and Explanation:
In this question, the initial investment is 1500, quarterly interest rate is 6%/4 = 1.5%, and there are 20 quarters in 5 years. Applying the formula, the future value is: 1500 ∗ ( 1 + 1.5 % ) 20 = 2 , 020.28.
$3,000 X 12 months = $36,000 per year. $36,000 / 6% dividend yield = $600,000. On the other hand, if you're more risk-averse and prefer a portfolio yielding 2%, you'd need to invest $1.8 million to reach the $3,000 per month target: $3,000 X 12 months = $36,000 per year.
Can you retire on $3 million? In short, yes. If you've managed to gather $3 million to fund your retirement, this should be more than enough to see you through in most cases. Many Americans believe they need over a $1 million in savings to retire comfortably.
You plan to invest $100 per month for five years and expect a 6% return. In this case, you would contribute $6,000 over your investment timeline. At the end of the term, your portfolio would be worth $6,949. With that, your portfolio would earn around $950 in returns during your five years of contributions.
The CFP Board of Standards requires you to have a calculator with an IRR function and no alphabetic keys. This means your best choices here are the HP 10bII+, the HP 12C, the TI BAII Plus or the TI BAII Plus Professional. Graphing calculators (TI 83 Plus, TI 84 Plus CE) are not acceptable.
The table below shows the present value (PV) of $5,000 in 20 years for interest rates from 2% to 30%. As you will see, the future value of $5,000 over 20 years can range from $7,429.74 to $950,248.19.
The future value of the deposit is $2,249.73. Given information: Interest rate = 4% Number of years = 3.