Future Value (FV)
What is the future value of $100 in a savings account, compounded annually for 2 years at 0.5%?
$100 × 1.0100 = $101.00
(2 periods, 0.5%)
What will $1,500 compounded daily for 5 years grow to at 7%?
$1,500 × 1.4190 = $2,128.50
(5 years, 7%)
Mercedes wants $3,612.20 after 5 years with rate of 4% compounded quarterly. How much should she invest now to have that much in the future?
$3,612.20 × 0.8195 = $2,960.20
(20 periods, 1%)
What is the APY for $1,000 at 3% compounded semiannually for 1 year?
$1000 × 1.0302 = $1,030.20 (2 periods, 1.5%)
$1,030.20 - $1000 = $30.20
APY = Interest for 1 Year/Principal
APY = $30.20/$1000 = 3.02%
What is the future value of $4,000 at 6% for 6 years, compounded semiannually?
$4000 × 1.4258 = $5,703.20
(12 periods, 3%)
What will $900 compounded daily for 10 years grow to at 1%?
$900 × 1.1052 = $994.68
(10 years, 1%)
Korvin wants $6,000 in 4 years with rate of 6%, compounded quarterly. How much must he invest now?
$6000 × 0.7880 = $4,728.00
(16 periods, 1.5%)
What is the APY for $4,000 at 6% compounded semiannually for 1 year?
$4000 × 1.0609 = $4,243.60 (2 periods, 3%)
$4,243.60 - $4,000 = $243.60
APY = Interest for 1 Year/Principal
APY = $243.60/$4000 = 6.09%
Averie deposits $200 in First Bank, which pays 4% interest compounded quarterly. How much will Averie have in her account at the end of 1 year?
$200 × 1.0406 = $208.12
(4 periods, 1%)
What would $700 grow to at 6% per year compounded daily for 7 years?
$700 × 1.5219 = $1,065.33
(7 years, 6%)
Joe Beary wants to attend Riverside College. Eight years from today he will need $50,000. If Joe’s bank pays 8% interest compounded semiannually, what must Joe deposit today to have $50,000 in 8 years?
$50,000 × 0.5339 = $26,695.00
(16 periods, 4%)
Sophie deposited $16,000 in Bank of the Plains at 6% interest compounded quarterly. What was the effective rate (APY)?
$16,000 × 1.0614 = $16,982.40 (4 periods, 1.5%)
$16,982.40 - $16,000 = $982.40
APY = Interest for 1 Year/Principal
APY = $982.40/$16,000 = 6.14%
Lionel Rodgers deposits $6,000 in Victory Bank, which pays 3% interest compounded semiannually. How much will Lionel have in his account at the end of 8 years?
$6,000 × 1.2690 = $7,614.00
(16 periods, 1.5%)
Noah deposited $19,000 in a savings account at 7% interest compounded daily. At the end of 6 years, what is the balance in Noah’s account?
$19,000 × 1.5219 = $28,916.10
(6 years, 7%)
Earl Miller, owner of a Papa Gino’s franchise, wants to buy a new delivery truck in 6 years. He estimates the truck will cost $30,000. How much does Earl need to invest today at 6% interest compounded semiannually, in order to have enough to buy his delivery truck in 6 years?
$30,000 × 0.7014 = $21,042.00
(12 periods, 3%)
Molly Hamilton deposited $50,000 at Bank of America at 8% interest compounded quarterly. What is the APY?
$50,000 × 1.0824 = $54,120.00 (4 periods, 2%)
$54,120.00 - $50,000 = $4,120.00
APY = Interest for 1 Year/Principal
APY = $4,120.00/$50,000 = 8.24%