Knowledge Check 01

Periods1%2%3%4%5%01.00001.00001.00001.00001.000011.01001.02001.03001.04001.050021.02011.04041.06091.08161.102531.03031.06121.09271.12491.157641.04061.08241.12551.16991.215551.05101.10411.15931.21671.276361.06151.12621.19411.26531.3401

Use this partial future value of 1 table to determine how long it will take to accumulate a future value of $1,200 assuming a present amount of $987 and an interest rate of 5 percent.

• 1 year
• 2 years
• 3 years
• 4 years
• 5 years
• 6 years