Use future value and present value calculations (see tables in the Chapter 1appendix) to determine the following.

Question:

a. The future value of a $400 savings deposit after eight years at an annual interest rate of 3 percent.

b. The future value of saving $1,800 a year for five years at an annual interest rate of 4 percent.

c. The present value of a $6,000 savings account that will earn 3 percent interest for four years.

Future Value
Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth...