Results 1 to 5 of 5

Math Help - future value

  1. #1
    Newbie
    Joined
    Jul 2010
    Posts
    18

    future value

    On January 1 of the years 2012, 2013, 2014 you will invest $10,000. What will your investment be worth on January 1, 2014 if the rate of return is 10%?



    just want to make sure if the equation is right
    10,000(1.1)^2 + 10,000(1.1) + 10,000
    Follow Math Help Forum on Facebook and Google+

  2. #2
    MHF Contributor Unknown008's Avatar
    Joined
    May 2010
    From
    Mauritius
    Posts
    1,260
    I don't think it's wrong.
    Follow Math Help Forum on Facebook and Google+

  3. #3
    MHF Contributor
    Joined
    Dec 2007
    From
    Ottawa, Canada
    Posts
    3,069
    Thanks
    65
    That's correct.
    By formula: 1000(1.10^3 - 1) / .10 = 3310

    Standard formula : A[(1 + i)^n - 1] / i
    A = Amount of regular investment (1000)
    i = interest rate (.10)
    n = number of periods (3)
    Follow Math Help Forum on Facebook and Google+

  4. #4
    Newbie
    Joined
    Jul 2010
    Posts
    18
    thanks! is that standard formula the formula for annuity?
    Follow Math Help Forum on Facebook and Google+

  5. #5
    MHF Contributor
    Joined
    Dec 2007
    From
    Ottawa, Canada
    Posts
    3,069
    Thanks
    65
    Yes.; for the future value of an annuity.
    "Annuity" is just another word for a regular periodic deposit/contribution/investment/whatever !
    Follow Math Help Forum on Facebook and Google+

Similar Math Help Forum Discussions

  1. Future Value
    Posted in the Algebra Forum
    Replies: 2
    Last Post: March 7th 2011, 10:14 PM
  2. Future and present value
    Posted in the Algebra Forum
    Replies: 0
    Last Post: October 4th 2009, 11:11 AM
  3. Present , future value
    Posted in the Business Math Forum
    Replies: 1
    Last Post: July 13th 2009, 03:23 PM
  4. compound future value
    Posted in the Business Math Forum
    Replies: 1
    Last Post: November 24th 2005, 05:46 AM

Search Tags


/mathhelpforum @mathhelpforum