P52 Future value calculation Without referring to the preprogrammed function on your financial calculator, use the basic formula for future value along with the given interest rate, r, and the number of periods, n, to calculate the future value of $1 in each of the cases shown in the following table.

Case Interest rate, r Number of periods, n

A 12% 2 B 6 3 C 9 2 D 3 4

P5-2: Future Value Calculation

Case

N

I

PV

Solve for FV

A

2

12%

1

$1.25

B

3

6%

1

C

2

9%

1

D

4

3%

1

	* You may use either formulas or Excel, but you must show your work. If you use the Excel financial
	functions, I will be able to see your work by clicking on the cell.
	First case is done for you using the Excel FV function.
	When using TVM functions, remember that PV is considered a cash outflow, so you should enter this as a
	negative number. For example, a deposit in your bank account represents present value. This is an "outflow".
	When entering in Excel, you would only use type "1" if payments are at beginning of the year. If this is the
	case, this would be specifically stated in the problem information.