Future Value: The future value is value of present amount compounded at an interest rate until a particular future date. The following formula is used to calculate the future value of an amount: Future value of an amount = Present value × ( 1+ Interest rate ) Number of periods Future value of an annuity refers to an amount received or paid equally for a specified number of periods with equal intervals for the investment made. To Compute: The future value of an annuity amount (if the interest compounded annually).

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Chapter AG, Problem G.4BE

To determine

Future Value: The future value is value of present amount compounded at an interest rate until a particular future date. The following formula is used to calculate the future value of an amount:

Future value of an amount = Present value×(1+ Interest rate)Number of periods

Future value of an annuity refers to an amount received or paid equally for a specified number of periods with equal intervals for the investment made.

To Compute: The future value of an annuity amount (if the interest compounded annually).

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