Good afternoon,Could you please explain why the future value factor is 100. I understand why the percentage is 9.65When I put in my calculator (1+r)^50= 100, it doesn't come out to 100. What does future value factor mean?From my understanding I should only be concerned with figuring out what the percentage rate was which is 9.65.Thank you 5.12(1 + r) = $80,000/$35,000 = 2.28571+r= 2.28571/8 = 2.2857125 = 1.1089r = .1089, or 10.89%Only 18,262.5 Days to RetirementYou would like to retire in 50 years as a millionaire. If you have $10,000 today, what rate ofreturn do you need to earn to achieve your goal?The future value is $1,000,000. The present value is $10,000, and there are 50 years untilpayment. We need to calculate the unknown discount rate in the following:$10,000 = $1,000,000/(1+r) 50(1+r) 50 = 100The future value factor is thus 100. You can verify that the implicit rate is about 9.65 percent.

d afternoon, Could you please explain why the future value factor is 100. I understand why the percentage is 9.65 When I put in my calculator (1+r)^50= 100, it doesn't come out to 100. What does future value factor mean? From my understanding I should only be concerned with figuring out what the percentage rate was which is 9.65. Thank you

d afternoon, Could you please explain why the future value factor is 100. I understand why the percentage is 9.65 When I put in my calculator (1+r)^50= 100, it doesn't come out to 100. What does future value factor mean? From my understanding I should only be concerned with figuring out what the percentage rate was which is 9.65. Thank you

PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)

6th Edition

ISBN:9781337117005

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter2: Using Financial Statements And Budgets

Section: Chapter Questions

Problem 5FPE

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You want to be a millionaire when you retire in 40 years. a. How much do you have to save each month if you can earn an APR of 12 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. How much do you have to save each month if you wait 10 years before you begin your deposits? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. How much do you have to save each month if you wait 20 years before you begin your deposits? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Savings per month starting today b. Savings per month starting in 10 years c. Savings per month starting in 20 years $ 14,877.20 42,386.55 128,309.79