TVM01 - Future Value of a Single Sum
This is a future value of a single sum problem.
What is the future value of $60,000 invested for 6 years compounded annually at an interest rate of 8.5%?
First, plug in the known values into the appropriate cells:
The present value – PV – is ($60,000)
The interest rate – Rate – is 8.5%
The number of periods – NPER – is 6
The unknown – future value – FV is determined by
Going to the Formulas tab, look for the FV function.
The function wizard pops up
The future value is $97,888