a. Compute the future value of $1,000 compounded annually for 10 years at 6 perc
ID: 2736724 • Letter: A
Question
a. Compute the future value of $1,000 compounded annually for 10 years at 6 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 $1,000 compounded annually for 10 years at 9 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 $1,000 compounded annually for 15 years at 6 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value $
Explanation / Answer
1.Calculation of future value of $1000 compounded annually for 10 years at 6%:
Future value = P* (1+r)power to n
= $1000 (1.06)power to 10
= $1000 * 1.79084
= $1790.84
2.Calculation of future value of $1000 compounded annually for 10 years at 9%:
Future value = $1000 *(1.09)power to 10
= $1000* 2.36736
= $2367.39
3.Calculation of future value of $1000 compounded annually for 15 years at 6%:
Future value = $1000*(1.06) power to 15
= $1000 * 2.39655
= $2396.55
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