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In engineering economy, the future value of first year is FV = PV (1 i). For second year it is FV = PV (1 i) (1 i). For third year it is FV = PV (1 i) (1 i)(1 i) where FV = future value, PV = present value, i = interest rate per period, n = the number of compounding periods. By induction, what is the future value of $1000 for 5 years at the interest rate of 6%?
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Answer / kang chuen tat (malaysia - pen
Answer 15 : By induction, the future value for 5 year = FV = PV (1 + i) (1 + i) (1 + i) (1 + i)(1 + i) = $1000 (1.06) (1.06) (1.06) (1.06)(1.06) = $1338.2256. The answer is given by Kang Chuen Tat; PO Box 6263, Dandenong, Victoria VIC 3175, Australia; SMS +61405421706; chuentat@hotmail.com; http://kangchuentat.wordpress.com.
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