how to respond to this post Equation: Compute the future value of $2,000, at an interest rate of 5%, compounded annually, in 6 years. FVn = PV0 * (1 + r)n

FVN = Future value at the end of n time period

Interest Rate= 5%

Number of Years= 6 years

Present Value= $2000

1. In this equation I typed 1.05^6 into the Google calculator to get the value which included the interest rate and the number of years which equated to 1.34009564.

2. I then took the present value of $2000 and multiplied it by 1.34009564 which equated to $2680.19 as listed below

FV = $2000 (1 + 0.05)6 FV = $2000/ (1.05)6 FV = $2000 * 1.34009564 FV = $2680.19

The most challenging part of this was dealing with calculating the equation itself at first, but after some careful reading it was easier to follow.