It depends on the period.
-- If the period is 1 year, the future value is 3.996 .
-- If the period is 6 months, the future value is 2.026 .
-- If the period is 3 months, the future value is 1.428 .
-- If the period is 2 months, the future value is 1.269 .
-- If the period is 1 month, the future value is 1.196 .
These are compounded values. If interest is simple, then the value
after 18 years is 2.44 .
THe factors are the same
7-3/4 percent compounded quarterly = 1.9375 percent paid each period. 7-1/2 years = 30 periods The future value of $1 = (1.019375)30 = $1.77836 (rounded) The future value of $5,200 = (5,200 x 1.77836) = $9,247.46
Changing the compounding period affects the future value of an investment by influencing how often interest is calculated and added to the principal. More frequent compounding periods, such as monthly instead of annually, generally result in a higher future value because interest is calculated more often, leading to interest on interest more frequently. Conversely, fewer compounding periods result in lower future values, as interest accumulates less frequently. Therefore, shorter compounding intervals typically enhance the growth of an investment over time.
To calculate the future value of a $900 annuity payment over five years at an interest rate of 9 percent, you can use the future value of an annuity formula: FV = P * [(1 + r)^n - 1] / r, where P is the payment amount, r is the interest rate, and n is the number of periods. Plugging in the values: FV = 900 * [(1 + 0.09)^5 - 1] / 0.09. This results in a future value of approximately $5,162.80.
What is the future value of $1,200 a year for 40 years at 8 percent interest? Assume annual compounding.
THe factors are the same
7-3/4 percent compounded quarterly = 1.9375 percent paid each period. 7-1/2 years = 30 periods The future value of $1 = (1.019375)30 = $1.77836 (rounded) The future value of $5,200 = (5,200 x 1.77836) = $9,247.46
Future Value
FV = Future Value
the future value of $5,000 in a bank account for 10 years at 5 percent compounded bimonthly?
Future value= 25000*(1.08)10 =53973.12
Future value = 1000*(1.08)7 = 1713.82
9f you are using the equation %error =[(oberved value - true value)/true value]x100 a negative percent indicates the observed value is less than the true value by the calculated percent.
formula for future value of a mixed stream
To calculate the future value of a $900 annuity payment over five years at an interest rate of 9 percent, you can use the future value of an annuity formula: FV = P * [(1 + r)^n - 1] / r, where P is the payment amount, r is the interest rate, and n is the number of periods. Plugging in the values: FV = 900 * [(1 + 0.09)^5 - 1] / 0.09. This results in a future value of approximately $5,162.80.
What is the future value of $1,200 a year for 40 years at 8 percent interest? Assume annual compounding.
It depends how the interest is calculated. If it's compounded, your initial 500 investment would be worth 638.15 after 5 years.