Using time value of money tables, calculate the following. (a) The future value of $450 six years from now at 7 percent.
(b) The future value of $900 saved each year for 10 years at 8 percent.
(c) The amount a person would have to deposit today (present value) at an interest rate of 6 percent to have $1,000 five years from now.
(d) The amount a person would have to deposit today to be able to take out $600 a year for 10 years from an account earning 8 percent.

a. $675.33

b. $1,943.03

c. $747.26

d. $4,026.05

Explanation:

a. Future Value

Pv = - $450

Pmt = $ 0

p/yr = 1

n = 6

r = 7 %

Fv = ?

With the above parameter available, the future value, Fv is $675.33

b. Future Value

Pv = - $900

Pmt = $ 0

p/yr = 1

n = 10

r = 8 %

Fv = ?

With the above parameter available, the future value, Fv is $1,943.03

c. Principal Amount

Pv = ?

Pmt = $ 0

p/yr = 1

n = 5

r = 6 %

Fv = $1,000

With the above parameter available, the future value, Pv is $747.26

d. Principal Amount

Pv = ?

Pmt = $ 600

p/yr = 1

n = 10

r = 8 %

Fv = $0

With the above parameter available, the future value, Pv is $4,026.05

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.