Future Value (FV) of a single lump sum In this discussion assignment you will make up an example where you calculate the future value of a single lump sum. You can imagine that you are creating a FV question for the exam. You can look for ideas in textbook or homework assignment questions. Task 1. You need to specify: o the situation (the story) o the amount in today's value o the given interest rate (n) o the period of time to grow (0) 2. Simply your story to pure financial description: $ at % for N periods 3. Then you calculate the future value by two means you are providing the solutions to the question you created) o Use formula o Use a financial calculator Example: 1. John currently earns a salary of $60,000 per year. Assume his salary grows at 5% per year. What will his salary be in three years? 2. Simplified to: $60,000 at 5% for 3 periods 3. Solve by formula: FV = $60,000 (1 +0.05)* = 69457.5 (if you don't know how to make supercript, then use "A", e.g. FV = $60,000 (1 +0.05)^3 = 69457.5) Solve by financial calculator: N=3; PV = 60000; 1/Y = 5; CPT FV; Get FV = -69457.5 (ignore the "-" sign) Or: N=3; PV = - 60000 ("-" sign means investment is a cash outflow); I/Y = 5; CPT FV: Get FV = 69457.5 Instructions You can make more interesting examples than the example, probably ones that are closer to your life, Your Post is due by Feb. 28.