Step-by-step solved example
Save $200 at the end of each year for 5 years at 6%. Find F.
1. Factor
(F/A, 6%, 5) = [(1.06)^5 − 1]/0.06 = 5.637.
2. Future
F = 200 × 5.637 = $1,127.
Answer: F = $1,127
Save $200 at the end of each year for 5 years at 6%. Find F.
1. Factor
(F/A, 6%, 5) = [(1.06)^5 − 1]/0.06 = 5.637.
2. Future
F = 200 × 5.637 = $1,127.
Answer: F = $1,127
1.(F/A, 10%, 2) equals
2.F of A = $100, i = 10%, n = 2 is
3.If i → 0, F/A approaches
4.A is assumed to occur at
5.(F/A, 8%, 1) equals
6.F/A and A/F are
7.A = $500, i = 0%, n = 4 → F =
8.The F/A factor grows with n
9.Handbook name of [(1+i)^n − 1]/i is
10.Deposits must be equal and equally spaced to use F/A. If not, use