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What is the future value in 7 years if the present value is 1 and the interest rate is 2 annually?
Assuming compound interest:
Future_value = present_value × (1 + interest_rate_per_period)^number_of_periods
We have:
present_value = 1
interest_rate_per_period = 2% per year
number_of_periods = 7 years
(The period is annually or yearly or per year.)
→ future value = 1 × (1 + 2%)^7 = (1+2/100)^7 = 1.02^7 ≈ 1.45 (to 2 dp).
What else can I help you with?
The present value of future cash flows has what relationship to interest rate?
The present value of future cash flows is inversely related to the interest rate.
What is the difference between present value interest factors versus future value interest factor?
The Present Value Interest Factor PVIF is used to find the present value of future payments, by discounting them at some specific rate. It decreases the amount. It is always less than oneBut, the Future Value Interest Factor FVIF is used to find the future value of present amounts. It increases the present amount. It is always greater than one.
What is the future value of 100 a year for 10 years earning 4 percent interest?
Assuming the interest is compounded annually, the future value is 100*(1.04)10 = 100*1.4802 (approx) = 148.02
What is the future value of 100000 dollars with 20 percent interest in 10 years?
Simple interest compounded annually and reinvested will yield 619173.64 before taxes.
Why present values are dependent upon interest rates?
Interest rates are also known as discount rates because in order to calculate the present value of a future amount, the future amount must be discounted back to the present
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 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.
The present value of future cash flows has what relationship to interest rate?
The present value of future cash flows is inversely related to the interest rate.
What is the difference between present value interest factors versus future value interest factor?
The Present Value Interest Factor PVIF is used to find the present value of future payments, by discounting them at some specific rate. It decreases the amount. It is always less than oneBut, the Future Value Interest Factor FVIF is used to find the future value of present amounts. It increases the present amount. It is always greater than one.
What is the future value of an investment of 500 today, with an interest rate of 5 per year, compounded annually, after 5 years?
The future value of a 500 investment with a 5 annual interest rate compounded annually after 5 years is approximately 638.14.
What is the relationship between interest rate with present value and future value?
direct
What is the future value of 100 a year for 10 years earning 4 percent interest?
Assuming the interest is compounded annually, the future value is 100*(1.04)10 = 100*1.4802 (approx) = 148.02
What rate of interest compounded annually is required to double an investment in 16 years?
Future Value = (Present Value)*(1 + i)^n {i is interest rate per compounding period, and n is the number of compounding periods} Memorize this.So if you want to double, then (Future Value)/(Present Value) = 2, and n = 16.2 = (1 + i)^16 --> 2^(1/16) = 1 + i --> i = 2^(1/16) - 1 = 0.044274 = 4.4274 %
What is the future value of 100000 dollars with 5 percent interest in 10 years?
Assuming interest is paid annually, 100000*(1.05)10 = 162889.46
More than one net present value?
The present value depends on assumptions made about interest or inflation rates for the future.
What is the future value of a growing annuity with a present value?
The present value is what it is worth today minus any surrender charges. The future value is what it will be worth in the future at a given interest rate and again minus any surrender charges if applicable.
What is the formula for calculating the future value of compound interest bonds?
The formula for calculating the future value of compound interest bonds is: FV PV (1 r)n, where FV is the future value, PV is the present value, r is the interest rate, and n is the number of compounding periods.
What happens to the present value of an annuity when the interest rate raises?
decreases towards the future value faster
