Interest Factor $(1+0\mathrm{.}08)$ x $(1+0\mathrm{.}08)$ x $(1+0\mathrm{.}08)=1\mathrm{.}2597$

Or you can use exponents, and calculate it directly:

Interest Factor $=(1+0\mathrm{.}08)^3=1\mathrm{.}2597$

The third alternative for solving the equations is to use a spreadsheet, and the fourth is to let a financial calculator perform the calculation. This requires that you know how your calculator functions and how to enter the following variables:

Input$1382000$KeystrokeP$/$YNIPVFVOutputAnswer

P$/$Y indicates the number of compounding periods per year, N is the number of years, I is the interest rate, PV is present value, and FV is future value.

Difference in Future Values

Difference $=$ FVXX$$ FVAA

$=$ $