Question

FV = PV x (1 + r)ⁿ

Case A
N = 20, r = 5%, PV = $200.
Solve for FV =
Case B
N = 7, r = 8%; PV = $4500.
Solve for FV =
Case C
N = 10; r= 9%; PV = $10,000
Solve for FV =
Case D
N = 12; r= 10%,

Answer 1

The future value (FV) of an investment for cases A, B, and C are calculated using the compound interest formula. Case D cannot be solved due to incomplete information regarding the number of periods (n).

Step-by-step explanation:

The student's question involves solving for the future value (FV) of an investment using the formula
`FV = PV x (1 + r)^n`, where PV is the present value, r is the annual interest rate, and n is the number of periods the money is invested.

Case A Solution:

FV = $200 x
`(1 + 0.05)^20`
FV = $200 x
`(1.05)^20`
FV = $200 x 2.653297705
FV = $530.66
The future value for Case A is $530.66.

Case B Solution:

FV = $4500 x
`(1 + 0.08)^7`
FV = $4500 x
`(1.08)^7`
FV = $4500 x 1.7138241
FV = $7,712.21
The future value for Case B is $7,712.21.

Case C Solution:

FV = $10,000 x
`(1 + 0.09)^10`
FV = $10,000 x
`(1.09)^10`
FV = $10,000 x 2.367363834
FV = $23,673.64
The future value for Case C is $23,673.64.

Case D Solution:

The information for Case D is incomplete as the number of periods (n) is not provided. Without this information, we cannot solve for the future value.