A. find the fv of $1,000 invested to earn 10% annually 5 years from now. answer this question by using a math formula and also by using the excel function wizard,
inputs: pv = 1000
i/yr = 10%
n = 5
formula: fv = pv(1+i)^n =
wizard (fv): $1,610.51

$1,610.51 (in both calculation)

Explanation:

1. Using Math formula,

We know, Future value, FV = PV ×

Given,

Present Value, PV = $1,000

Interest, i = 10% = 0.10

Number of periods, n = 5 years

Putting the values in the formula, we can get,

Future value, FV = PV ×

FV = $1,000 ×

or, FV = $1,000 × 1.61051

Therefore, FV = $1,610.51

2. Using excel formula,

See the image below:

We have to use present value as negative so that the result should be used as positive.

how ever much it wants

Explanation: