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# Present Value / Future Value

Show the formula used in the following questions in detail

1)
a. What is the future value of \$4,000 invested at 6% for 22 years with annual compounding?

b. What is the future value of \$4,000 invested at 6% for 22 years with monthly compounding?

c. What is the future value of \$4,000 invested at 6% for 22 years with continuous compounding?

d. What is the present value of 1,000,000 pesos due in 14 years with a discount rate = 7% using annual compounding?

e. What is the present value of 1,000,000 peso due in 14 years with a discount rate = 7% using continuous compounding?

#### Solution Preview

1)

a. What is the future value of \$4,000 invested at 6% for 22 years with annual compounding?

The future value can be found using the formula FV = PV X (1+r)^n.
Here FV is the future value
PV is the present value
r is the rate
n is the time period
FV = 4,000 X (1+6%)^22 = \$14,414.15

b. What is the future value of \$4,000 invested at 6% ...

#### Solution Summary

The solution explains the calculation of present value and future value

\$2.19
The text contains multiple financial mathematics questions related to future value and present value calculations, with answers provided for each question.
multiple_questions_with_answers
Given a text passage, determine:
    1. If it contains a mathematical question (including word problems or calculations)
    2. If an answer to that mathematical question is provided in the text

First, describe the content structure you found in 1-2 sentences.

Then provide your analysis in the following format:
TYPE: <one of the following values>
- NO_QUESTION
- SINGLE_QUESTION
- SINGLE_QUESTION_WITH_ANSWER
- MULTIPLE_QUESTIONS
- MULTIPLE_QUESTIONS_WITH_ANSWERS
system
Explore BrainMass
Share

# Present Value / Future Value

Show the formula used in the following questions in detail

1)
a. What is the future value of \$4,000 invested at 6% for 22 years with annual compounding?

b. What is the future value of \$4,000 invested at 6% for 22 years with monthly compounding?

c. What is the future value of \$4,000 invested at 6% for 22 years with continuous compounding?

d. What is the present value of 1,000,000 pesos due in 14 years with a discount rate = 7% using annual compounding?

e. What is the present value of 1,000,000 peso due in 14 years with a discount rate = 7% using continuous compounding?

#### Solution Preview

1)

a. What is the future value of \$4,000 invested at 6% for 22 years with annual compounding?

The future value can be found using the formula FV = PV X (1+r)^n.
Here FV is the future value
PV is the present value
r is the rate
n is the time period
FV = 4,000 X (1+6%)^22 = \$14,414.15

b. What is the future value of \$4,000 invested at 6% ...

#### Solution Summary

The solution explains the calculation of present value and future value

\$2.19
user
The text contains multiple financial mathematics questions related to future value and present value calculations, with answers provided for each question.

TYPE: MULTIPLE_QUESTIONS_WITH_ANSWERS