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2 - Time Value of Money

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FV Tables

FV Tables
FV Factors FV Factors
Periods 1% 2% 3% 4% 5% 6% 7%
1 1.01 1.02 1.03 1.04 1.05 1.06 1.07
2 1.0201 1.0404 1.0609 1.0816 1.1025 1.1236 1.1449
3 1.0303 1.0612 1.0927 1.1249 1.1576 1.191 1.225
4 1.0406 1.0824 1.1255 1.1699 1.2155 1.2625 1.3108
5 1.051 1.1041 1.1593 1.2167 1.2763 1.3382 1.4026
6 1.0615 1.1262 1.1941 1.2653 1.3401 1.4185 1.5007
7 1.0721 1.1487 1.2299 1.3159 1.4071 1.5036 1.6058
8 1.0829 1.1717 1.2668 1.3686 1.4775 1.5938 1.7182
9 1.0937 1.1951 1.3048 1.4233 1.5513 1.6895 1.8385
10 1.1046 1.219 1.3439 1.4802 1.6289 1.7908 1.9672
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Lecture Notes

There are tables that provide these factors for use as a quick reference, so let's practice using the table using just a few straightforward questions. So if you invest $1,000 at 4% today, how much will you have at the end of eight years? To repeat, if you invest at $1,000 at 4% today, how much will you have in eight years? You use the 4% and eight years to find the interest factor and then multiply that times $1,000 to get the final value.

Question 2. If you invest $400 at 7% today, how much will you have in three years? Again, if you invest $400 at 7% today, how much will you have in three years?

Both questions and answers appear in the note pages.