What is the future value of $450 six years from now at 7 percent? | Homework.Study.com (2024)

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Business Finance Future value

Question:

What is the future value of $450 six years from now at 7 percent?

Future Value:

Future value is the accumulated amount of the sum of money or series of cash flow at the end of the period. This is calculated to determine the value of the investment at a specific period of time.

Answer and Explanation:1

Use the future value of $1 formula to calculate for the future value six years from now.

FV = future value = ?

n = number of periods = 6

rate = periodic rate = 0.07

PV = deposited at the beginning = $450

FV = PV x (1+rate)^n

FV = $450 x (1+0.07)^6

FV = $450 x 1.500730352

FV = $675.33

The future value is $675.33.

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Future Value Definition Formula & Examples

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Chapter 5/ Lesson 16

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Understand the definition of future value and the future value formula. Explore some examples that show how to calculate the future value of an investment.

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