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The four people below have the following investments. invested amount interest rate compounding jerry $ 11,700 12% quarterly elaine 14,700 6 semiannually george 21,700 8 annually kramer 17,700 10 annually
The four people below have the following investments. invested amount interest rate compounding jerry $ 11,700 12% quarterly elaine 14,700 6 semiannually george 21,700 8 annually kramer 17,700 10 annually required:
calculate the future value at the end of five years. (fv of $1, pv of $1, fva of $1, and pva of $1)
Final answer:The future values at the end of five years for Jerry, Elaine, George, and Kramer are $18,799.89, $18,037.20, $31,536.02, and $30,399.00 respectively.Explanation:To calculate the future value at the end of five years, we will use the formula:FV = PV x (1 + r/n)^(n*t)Where:FV is the future valuePV is the present valuer is the interest raten is the number of times the interest is compounded per yeart is the number of yearsLet's calculate the future values for each person:Jerry: FV = $11,700 x (1 + 0.12/4)^(4*5) = $18,799.89Elaine: FV = $14,700 x (1 + 0.06/2)^(2*5) = $18,037.20George: FV = $21,700 x (1 + 0.08/1)^(1*5) = $31,536.02Kramer: FV = $17,700 x (1 + 0.1/1)^(1*5) = $30,399.00Therefore, the future values at the end of five years for Jerry, Elaine, George, and Kramer are $18,799.89, $18,037.20, $31,536.02, and $30,399.00 respectively....