pv present value formula
Posted October 21, 2002
By admin
Can someone help me with this future value formula?
im trying to find the future value of an investment in bonds. please explain how to get the answer i don’t understand.
Present Value = 1000
interest rate = 7 percent
number of times investment is compounded per year= 2
term = 10 years
the formula is FV=PV ((1+r/n) to the power of (nt))
nevermind, i found out the answer on my own. wow what a waste of 5 points.
Substitute the numbers in the all of the variables, except for the F, as that is what you are finding.
Type the rate into your calculator as a decimal (ie, 7% is written as .07).
F = 1000(1 + .07/2)^(2*10)
Simplifying, F = 1000(1.035)^20. Use your calculator to find your solution.
FA 8 9 Net Present Value Example
