Compute the future value of $2,000, at an interest rate of 5%, compounded annually, in 6 years.

Calculate a time value of money problem, and the equation provided for each problem

• Write out each step you used to solve the problem you were assigned, and provide the solution to the problem as well.
  • Present your final solution as a decimal approximation carried out to the second decimal point (e.g., $000.00).
• Explain the meaning of the problem and your solution in your own words.
• Explain your answers to the following questions:
  • If the rate in the problem was higher, would the solution be higher or lower?
  • If the time period in the problem was shorter, would the solution be higher or lower?
• Describe an element of this problem that was challenging to you.
• Ask at least one question about time value of money mathematics.

FVn=PVo(1+r)n