Future Value Applications

When we calculate (1.005)^48, we get ​ ​ (a)   ​

• 1.2704
• 10.4013
• 48.24

0.270489/0.005 rounded to 3 decimal places is 54.0978

• True

• False

The value of the future value if n = 48, p = $100, and i = 0.005 is

The payment amount, p, is ​ (a)  

• $75
• 6
• 12

If monthly deposits of $75 are made into a Christmas Club account paying 6% interest compounded monthly, how much money will be available after the twelfth deposit?

The value we would use for i is

• 0.06

• 0.12

• 0.05

• 0.005

If monthly deposits of $75 are made into a Christmas Club account paying 6% interest compounded monthly, how much money will be available after the twelfth deposit?

What value would we use for n in the formula?

• 1

• 12

• 6

• 144

If monthly deposits of $75 are made into a Christmas Club account paying 6% interest compounded monthly, how much money will be available after the twelfth deposit?

If monthly deposits of $225 are made into an account paying 9% interest compounded monthly, how much will the account contain after twelve years?

The payment amount is

• $18.75

• $2700

• $225

If monthly deposits of $225 are made into an account paying 9% interest compounded monthly, how much will the account contain after twelve years?

Find the rate per period

• 0.0075

• 0.075

• 0.09

• 0.12

If monthly deposits of $225 are made into an account paying 9% interest compounded monthly, how much will the account contain after twelve years?

Find the number of periods.

• 12

• 144

• 108

• 25