TVM21 - Future Value of a Single Sum

Audio Transcript

If $6,000 is deposited in a savings account today, what amount will be available four years from today? Use an interest rate of 8.5%.

Compute the future value of a single sum.

Enter the known variables.

The present value, PV, is -$6,000.

The rate is 8.5%.

The number of periods, NPER, is 4.

We go to the Formulas tab and look for the FV function.

We click on PV,

We click on rate,

We click on NPER.

The future value, FV, is $8,315