Present Value of 1 Future Value of 1

question 58

True/False

Present Value of 1 Future Value of 1 Present Value of an Annuity of 1 Future Value of an Annuity of 1 With deposits of $5,000 at the end of each year, you will have accumulated $38,578 at the end of the sixth year if the annual rate of interest is 10%.
7.7156 is the FV factor on the Future Value of an Annuity table; n = 6; i = 10%
Future Value of an Annuity = Annuity * FV Factor
Future Value of an Annuity = $5,000 * 7.7156 = $38,578

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Definitions:

Qualitative Characteristic

A feature that allows users to assess and compare the financial position, performance, and changes in financial position of an entity, emphasizing non-quantifiable information.

Present Value Analysis

A financial calculation that determines the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Capital Investment

The spending of money to purchase assets or property intended to create growth or profit for a business.

Investment Funds

Pooled funds that collect capital from multiple investors to invest in securities, real estate, or other assets, according to a predetermined strategy.