Future value= 25000*(1.08)10
=53973.12
25000 x (1.02)14 = 32976.97. For comparison, compounded annually would give 25000 x (1.04)7 = 32898.29, not a huge difference but worth having!
Assuming interest is paid annually, 100000*(1.05)10 = 162889.46
4 time periods (eg 4 years if the 5% simple interest were added each year). In simple interest, the interest is added, but attracts no interest itself (that is compound interest) - only the original value attracts the interest: 5% of RM 25000 = RM 1250 added each time RM 30000 - RM 25000 = RM 5000 RM 5000 ÷ RM 1250 = 4 time periods
Compounded annually: 2552.56 Compounded monthly: 2566.72
What effect do interest rates have on the calculation of future and present value, how does the length of time affect future and present value, how do these two factors correlate.
What is the future value of $1,200 a year for 40 years at 8 percent interest? Assume annual compounding.
102102.52
Assuming the interest is compounded annually, the future value is 100*(1.04)10 = 100*1.4802 (approx) = 148.02
200000000 dollars
$14,693.28
The face value is 40000*(1.05)10 = 65156 approx.
25000 x (1.02)14 = 32976.97. For comparison, compounded annually would give 25000 x (1.04)7 = 32898.29, not a huge difference but worth having!
The face value is 40000*(1.05)10 = 65156 approx.
With only one year the value is 11600
1862
Assuming interest is paid annually, 100000*(1.05)10 = 162889.46
The future value (FV) of $10,000 at 5% interest for 7 years follows the following formula: 10,000 (1+.05)^7 = 10,000 * 1.41 = $14,100