Solve Future Value for A, B, and C a. Compute the future value of $2,000 compoun

Question

Solve Future Value for A, B, and C

a. Compute the future value of $2,000 compounded annually for 10 years at 4 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value $

b. Compute the future value of $2,000 compounded annually for 10 years at 10 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value $

c. Compute the future value of $2,000 compounded annually for 15 years at 4 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value $

Explanation / Answer

a. future value = amount*annuity of rate i.e 4% annuity of 4% for 10 years =8.11 (1/1.04)

future value =$2,000 *8.11 =$16221.79

b. future value = amount * annuity @10% for 10 years = 6.145(1/1.1)

future value =$2,000 *6.145 =$12289.13

c. future value = amount * annuity @4% for 15 years = 11.1184(1/1.04)

future value = $2,000 *11.1184 =$22236.8

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