Part 1: Future value calculation
Without referring to tables or to the preprogrammed function on your financial calculator, use the basic formula for future value along with the given interest rate, i, and the number of periods, n, to calculate the future value interest factor in each of the cases shown in the following table.
case Interest rate,i Number of periods, n
A 12% 2
B 6 3
C 9 2
D 3 4
Part 2: Future value tables
Use the future value interest factors in Appendix Table
In each of the cases shown in the table on the facing page to estimate, to the nearest year, how long it would take an initial deposit, assuming no withdrawals,
a. To double.
b. To quadruple.
Case Interest rate
A 7%
B 40
C 20
D 10