Question: Future Value = Present Value (1 + interest rate)number of periods Example Complete the following table Periods Interest Rate (%) Future Value of $50? 3

Future Value = Present Value (1 + interest rate)number of periods
Example
Complete the following table
Periods Interest Rate (%) Future Value of $50?
3 2% Step 1. FV = $50 (1 + .02)3
Step 2.FV = $50 (1.02)3
Step 3.FV = $50 (1.06)
Step 4.FV = $53
5 8% Step 1.FV = $50 (1 +.08)5
Step 2.FV = $50 (1.08)5
Step 3.FV = $50 (1.46)
step 4 fv =$ 73

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