We are investing $ 1 5 , 0 0 0 at an interest rate of 6 , compounded annually for a period of 1 2 years We want to calculate the future value of this investment Present Value of $ 1 i 6 , n 1 2 , PV factor 5 0 6 6 Future Value of $ 1 i 6 , n 1 2 , FV factor 2 0 1 2 2 Present value of an Annuity i 6 , n 1 2 , PV factor 4 1 1 1 4 Future Value of an Annuity i 6 , n 1 2 , FV factor 8 1 1 5 2 What is the correct factor we should use to calculate

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We are investing $ 1 5 , 0 0 0 at an interest rate of 6 % , compounded annually for a period of 1

We are investing $

15, 000

at an interest rate of

6 %,

compounded annually for a period of

12

years. We want to calculate the future value of this investment.

Present Value of $

1

: i

= 6 %,

= 12,

PV factor

= . 5066

Future Value of $

1

: i

= 6 %,

= 12,

FV factor

= 2.0122

Present value of an Annuity: i

= 6 %,

= 12,

PV factor

= 4.1114

Future Value of an Annuity: i

= 6 %,

= 12,

FV factor

= 8.1152

What is the correct factor we should use to calculate?

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