Which of the Following Processes Can Be Used to Calculate the Future Value of Multiple Cash Flows
Future Value Computer
The time to come value estimator can be used to calculate the time to come value (FV) of an investment with given inputs of compounding periods (Due north), interest/yield charge per unit (I/Y), starting corporeality, and periodic eolith/annuity payment per menses (PMT).
ResultsFuture Value: $3,108.93
|
Balance Accumulation Graph
Schedule
| start primary | start residual | interest | end balance | end principal | |
| 1 | $1,000.00 | $1,000.00 | $sixty.00 | $1,160.00 | $i,100.00 |
| 2 | $1,100.00 | $1,160.00 | $69.60 | $1,329.60 | $i,200.00 |
| iii | $1,200.00 | $1,329.sixty | $79.78 | $i,509.38 | $1,300.00 |
| 4 | $i,300.00 | $1,509.38 | $ninety.56 | $1,699.94 | $1,400.00 |
| five | $1,400.00 | $1,699.94 | $102.00 | $1,901.93 | $1,500.00 |
| 6 | $1,500.00 | $1,901.93 | $114.12 | $2,116.05 | $1,600.00 |
| vii | $1,600.00 | $2,116.05 | $126.96 | $2,343.01 | $one,700.00 |
| 8 | $1,700.00 | $ii,343.01 | $140.58 | $2,583.59 | $ane,800.00 |
| 9 | $1,800.00 | $2,583.59 | $155.02 | $2,838.61 | $1,900.00 |
| x | $ane,900.00 | $two,838.61 | $170.32 | $3,108.93 | $2,000.00 |
Future Value
Future value, or FV, is what money is expected to be worth in the future. Typically, cash in a savings account or a hold in a bond purchase earns compound interest so has a different value in the future.
A good example of this kind of calculation is a savings account because the future value of it tells how much will be in the account at a given bespeak in the hereafter. It is possible to use the calculator to learn this concept. Input $10 (PV) at six% (I/Y) for 1 year (N). We can ignore PMT for simplicity's sake. Pressing summate volition result in an FV of $x.threescore. This means that $10 in a savings account today volition be worth $10.sixty one year later.
The Time Value of Money
FV (forth with PV, I/Y, Due north, and PMT) is an important element in the fourth dimension value of money, which forms the backbone of finance. There can be no such things every bit mortgages, machine loans, or credit cards without FV.
To acquire more about or do calculations on present value instead, feel gratis to popular on over to our Nowadays Value Calculator. For a brief, educational introduction to finance and the time value of coin, delight visit our Finance Estimator.
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Source: https://www.calculator.net/future-value-calculator.html
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