Use the future value formula to find the indicated value. n=22​; i=0.02​; PMT=$51​; FV=?

Question

Use the future value formula to find the indicated value.

n=22​; i=0.02​; PMT=$51​; FV=?

FV=​$ ____________

​(Round to the nearest​ cent.)

Answer 1

Hi Jerry N.

FV= PMT(((1+r/n)^nt)-1)/(r/n)

Since you don't have a t listed we will assume it is 1

FV=PMT((1+r)ⁿ)-1)/r

FV=51(((1.02)²²)-1)/.02=

FV=51((1.545979671-1))/.02

FV=51(.545979671)/.02

FV=27.84496321/.02

FV=1392.25

You can check this on a Calculator online(Future Value at the Calculator Site), or BA II Plus, or there may be a formula you are using in class. There also some old tables for the periods versus interest that can be used to a certain extent.