What is the future value of $500 one year from today if the interest rate is 6 percent?
The future value of $500 one year from today if the interest rate is 6 percent is $530.
The future value formula is FV = PV× (1 + i) n. It answers questions like, How much will $X invested today at some interest rate and compounding period be worth at time Y?
| Discount Rate | Present Value | Future Value |
|---|---|---|
| 3% | $1,000 | $1,159.27 |
| 4% | $1,000 | $1,216.65 |
| 5% | $1,000 | $1,276.28 |
| 6% | $1,000 | $1,338.23 |
The future value of $500 after one year at a rate of interest 8% is $540. Given that the deposited amount is $500,number of year is one and rate of interest is 8%. We are required to find the future value of money after 1 year.
Applying the formula, the future value is: 550 ∗ ( 1 + 7 % ) 6 = 825.40.
The future value of a $1000 investment today at 8 percent annual interest compounded semiannually for 5 years is $1,480.24.
The future value of $800 at 8 percent after six years equals $1,269.50. Where, PV = Present value = $800. i = interest rate = 8%
Hence, if a two-year savings account containing $1,000 pays a 6% interest rate compounded daily, it will grow to $1,127.49 at the end of two years.
Correct Answer: Option C) $1,058.30.
What is the future value of $2000 in three years if you deposit it today in an account earning 4% per year?
The future value of the deposit is $2,249.73. Given information: Interest rate = 4% Number of years = 3.
Experts have been vetted by Chegg as specialists in this subject. >>>>> PV = Present Value = $1,000 n = 5 years r = Annual interest rate = 12% Future Value = PV * (1+r)^n = $1,000 * (1+12%)^5 = $1,000 * 1.762342 = $1,762.342 Future Value is $1,762.34 >>>> PV = Present Value = $1,000 n = 10 years r = Annual interest…
The table below shows the present value (PV) of $3,000 in 20 years for interest rates from 2% to 30%. As you will see, the future value of $3,000 over 20 years can range from $4,457.84 to $570,148.91.
Final answer: The future value of $500 invested each year for 20 years at a rate of 10% is approximately $33,637. Therefore, the nearest correct answer from the given options is e) $33,735.
| Discount Rate | Present Value | Future Value |
|---|---|---|
| 4% | $1,000 | $2,191.12 |
| 5% | $1,000 | $2,653.30 |
| 6% | $1,000 | $3,207.14 |
| 7% | $1,000 | $3,869.68 |
| Discount Rate | Future Value | Present Value |
|---|---|---|
| 5% | $10,000 | $6,139.13 |
| 6% | $10,000 | $5,583.95 |
| 7% | $10,000 | $5,083.49 |
| 8% | $10,000 | $4,631.93 |
If you invest $10,000 and make an 8% annual return, you'll have $100,627 after 30 years. By also investing $500 per month over that timeframe, your ending balance would be $780,326. Exchange-traded funds (ETFs) and mutual funds are both excellent investment options.
The table below shows the present value (PV) of $50,000 in 20 years for interest rates from 2% to 30%. As you will see, the future value of $50,000 over 20 years can range from $74,297.37 to $9,502,481.89.
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.
Compound interest can be calculated using the formula FV = P*(1+R/N)^(N*T), where FV is the future value of the loan or investment, P is the initial principal amount, R is the annual interest rate, N represents the number of times interest is compounded per year, and T represents time in years.
How to calculate future value with interest compounded annually?
FV=PV(1+i)n
In this formula, the superscript n refers to the number of interest-compounding periods that will occur during the time period you're calculating for.
| Discount Rate | Present Value | Future Value |
|---|---|---|
| 3% | $100 | $134.39 |
| 4% | $100 | $148.02 |
| 5% | $100 | $162.89 |
| 6% | $100 | $179.08 |
| Discount Rate | Present Value | Future Value |
|---|---|---|
| 4% | $1,500 | $1,824.98 |
| 5% | $1,500 | $1,914.42 |
| 6% | $1,500 | $2,007.34 |
| 7% | $1,500 | $2,103.83 |
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.
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.
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